The Japanese yen has made three waves of a pull-back from latest high that could be near completion as price tested and already reversed from very important 61.8% Fibonacci support level. We expect to see a move higher from here, ideally in impulsive fashion back to 98.64.
USDJPY 1h Chart: Elliott Wave Analysis
The reason for a bullish outlook is previous five-wave rally in wave A) which is called an impulsive move. Impulses show direction of a trend or temporary change in trend, that’s why we think that current trend is bullish, and that three-wave retracement from 98.65 is temporary. Invalidation level remains at 95.75.
On the basic chart below you can see where USD/JPY is at the moment.