Short term Elliott Wave view in USDJPY suggests that the rally from March 09, 2020 low is showing a higher high sequence favoring a move towards $112.45-$114.17 target area the upside. The internals of that rally is unfolding as Elliott wave double three structure. While the initial rally to $105.92 high ended wave (W) in blue. Down from there, the 3 wave pullback ended wave (X) at 103.05 low. Up from there, the pair made another rally higher in 3 swings and completed wave (Y) at $108.50 high. Thus completed the wave ((W)) in black.
Below from there, the pair made a 3 wave pullback in wave ((X)). The internals of that pullback unfolded as a zigzag structure where wave (A) ended at $105.69 low. Wave (B) ended at $107.57 and wave (C) ended at $105.09 low. Above from there, the pair went on to make a new high above the previous peak and confirmed the ((Y)) leg higher. Near-term, while dips remain above $105.09 low expect pair to extend higher in wave (W) towards $109.51-$111.24 area next before a pullback in wave (X) could take place. We don’t like selling it. As far as the pivot from $105.09 low stays intact expect pair to extend higher.
USDJPY 1 Hour Elliott Wave Chart
