USDJPY Elliott Wave View: Turning Lower

Short term USDJPY Elliott wave view suggest that the decline from 7/11 peak is unfolding as a double three Elliott wave structure. Decline to 108.71 low ended Minor wave W and Minor wave X bounce ended at 110.95 peak. Subdivision of Minor wave Y is unfolding as a Zigzag structure. Minute wave ((w)) of ((Y) ended at 108.59 low and Minute wave ((x)) of (Y) bounce is proposed complete at 109.82.

However, a break below 108.59 is needed to add conviction to this view. Until then a double correction in Minutte wave ((x)) can’t be ruled out. Near term, as far as pivot from 110.95 peak stays intact, expect pair to extend lower in Minute wave ((y)) or pullback in 3 waves at least. We don’t advise buying the pair and expect more downside in the pair towards 107.46-106.92 area next before a bounce is seen.