During the first half of July, the USDJPY pair surpassed June’s highs moving up to 108.969. The 4-hour chart shows a potential corrective structure as a zigzag pattern. The testing of previous lows makes us expect a second impulsive move.
The current area, which starts from 107.633 to 107.319, corresponds to the exhaustion area of the zigzag pattern. We expect a bullish move with a potential profit target between 109.9779 and 110.876. The invalidation level is under 106.789.
Before pulling the trigger, we should wait for a breakout that confirms the bullish bias.
Remember that the price is not forced to move as our outlook proposes. The charts released corresponds to an educational application of the Elliott Wave Theory. Comments issued do not represent an investment recommendation.