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We talked about the bullish double zigzag pattern forming on USDJPY a couple of weeks ago. It consists of primary sub-waves Ⓦ-Ⓧ-Ⓨ.
The primary wave Ⓧ is on its way to completion. Its formation resembles a bearish double zigzag (W)-(X)-(Y) and it is of the intermediate degree. Currently, wave (Y) is being constructed.
In the short term, prices could fall to 105.27. At that level, intervening wave Ⓧ will be at 61.8% of the zigzag wave Ⓦ.
An alternative scenario suggests that intervening wave Ⓧ could take the form of a triangle. This would consist of intermediate sub-waves (A)-(B)-(C)-(D)-(E).
This scenario assumes that USDJPY has formed its first three sub-waves and it is on its way up in wave (D).
Wave (D) could complete its course near 109.22. At that target level, wave (D) will be at 76.4% of wave (C).
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