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USD/JPY: The Last Leg of the Bullish Impulse is Similar to the Ending Diagonal

The USDJPY chart shows the formation of a global impulse trend, which consists of cycle waves. In recent months, we have seen the price creeping up in the cycle wave V, more precisely in its final part.

Wave V, apparently, takes the form of a 5-wave impulse of the primary degree ①-②-③-④-⑤. In this impulse, the first four parts are finished.

Currently, we can expect the construction of the primary fifth wave, which takes the form of an intermediate impulse (1)-(2)-(3)-(4)-(5). The price in the final primary wave ⑤ may rise to 154.22.

At that price level, minor wave 5, which is similar to the ending diagonal, will be at 100% of impulse 3.

An alternative scenario shows that the entire cycle wave V has already completely ended in the form of a primary impulse.

Thus, in the next coming trading weeks, we can expect a fall in the exchange rate and the formation of a new bearish trend.

It is assumed that a bearish double zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ may form in the market in the near future.

The upcoming decline in the first wave Ⓦ may reach the area of 140.38, that is, the previous minimum of fluctuations, and then even lower.

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