USDJPY corrective drop resumes its last Wave (B) lower towards 108.50 levels. It is expected to find support and resume its uptrend thereafter. Also note that 108.50 is fibonacci 0.382 retracement of larger degree Wave (3).
Structurally, USDJPY is correcting lower to terminate Wave (4) around 108.30/50 levels. It is unfolding an impulse wave since 102.59 lows registered on January 06, 2021. The last wave is expected to terminate towards 112.50/113.00 mark.
The complete wave counts are not shown here but USDJPY potentially terminated Wave (3) around 111.65 levels early this month. Also note that wave iii of 3 was an extension, which terminated at 111.00 earlier.
Going further, Wave 4 corrected lower towards 107.47 while Wave 5 unfolded as an ending diagonal, terminating at 111.65 as discussed earlier. If the above structure holds well, USDJPY should produce a larger degree Wave (4) correction lower towards 108.50 zone.
Once complete, USDJPY bulls would be inclined to push higher towards 112.50/113.00 levels at least, to terminate larger degree Wave (5). The entire structure would then terminate Wave (C) of a larger degree Wave (A)-(B)-(C) that had begun from 101.18 levels.
Finacademy Technical Team
Gold prices dropped through $1773 lows on Thursday before finding support again. The drop from $1793 was in-line with price action of a gartley.
The US dollar index might have carved a lower high around 96.50 mark on Tuesday. The index dropped through 95.80 levels on Wednesday before finding some support.
USDJPY is soon approaching a formidable resistance zone around the 114.40-50 mark. The currency pair has been carving a corrective rally since 112.50 lows.