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The USDJPY structure indicates a double zigzag of the primary degree. The last leg of this double combination is in development.
The bullish primary wave Ⓨ consists of intermediate sub-waves (W)-(X)-(Y)-(X)-(Z). Zigzag wave (W) is fully completed whereas intervening wave (X) is completing a contracting triangle.
It is likely that we will see a bullish move in wave (Y) soon.
We could see the USDJPY pair appreciate to complete wave (Y) near 110.56. At that level, intermediate wave (Y) will be at 161.8% of wave (W).
Another scenario shows that intervening wave Ⓧ is still under development. This takes the form of a bearish triple zigzag.
In this case we see the construction of intermediate sub-waves (W)-(X)-(Y). Intervening wave (X) with minor sub-waves A-B-C-D-E is fully completed.
In the short term we expect a decline towards the 102.05 area. At that level, wave (Z) will be at 78.6% of wave (Y).
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