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The current USDJPY structure hints to a cycle degree bullish impulse (wave V) consisting of primary sub-waves ①-②-③-④ and ⑤. Wave ④ of this pattern is a completed triangle.
Advanced price action theory suggests that the first part of the triangle’s spread (distance from (A) to (B) ) is often equivalent to the last wave following the triangle’s completion (wave ⑤) .
Despite the likely scenario, a failure to successfully validate such a pattern provides an alternative scenario.
That is considered on the back of primary triangle ④’s longevity. Usually, when bulls accumulate for long periods of time extended impulses can be seen.
In a likely scenario, 110.057 could mark the first part of an elongated ⑤, rather than its conclusion.
Look for a valid breakout above the critical 110.57 for further upside towards 112.
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