USDJPY is ready to start a new upward move towards 106-108. Prices are making upward impulsive moves and corrective pull backs. Prices have risen in an impulsive pattern from 102.85 and have pulled back in a three wave formation from recent highs at 104.90. The downward corrective pull back has reached the 50% retracement and the channel boundaries as shown in the charts below.
Prices have retraced enough and with a corrective price formation. The decline is corrective and we are expecting prices to continue higher. Confirmation will initially come once prices break above the intermediate high near 104.47. Prices have now started wave 5 which is the final wave up from the start of the upward move from 96.
Wave 4 has most probably ended at 102.85. We derive this conclusion because prices have reached the lower channel boundaries and because prices have started a new upward move in an impulsive pattern. I expect prices to continue higher and not break below 102.85 again. Our first target is 106 where wave 3 of 5 is expected to end. Breaking below 103.30 will put this bullish scenario in danger.
As always, thank you for taking the time to catch up on my thinking.