Price Hikes, Yield Spikes: Is the Yen Able to Dominate? (USD/JPY Elliott Wave)…

The principle Elliott wave rely we’re following is that wave ((iii)) is starting to development decrease. This means a big decline that carries all the way down to 139 and probably 128. As soon as the five-wave sequence is full, a lot decrease ranges might be attained.

This would slot in line with shrinking rate of interest differentials between the Japanese Yen and different currencies.

There may be another wave rely we’re following (pink labels) that implies the present decline in 2025 is wave ‘C’ of a giant triangle sample. Wave ‘C’ would discover a backside above 139.57 and sure within the 146-147 vary.

Underneath the alternate rely, USDJPY would commerce in a wide variety between 140 to 158.

Backside Line

USDJPY seems to be declining in a 3rd wave in the direction of 139. If USDJPY stalls close to 146-147, then we’ll think about the potential of the alternate wave rely, a triangle.

Resulting from multi-decade highs in Japan rates of interest, a big decline in USDJPY is the sample to think about.

Brief-Time period Bias: Bearish

Lengthy-Time period Bias: Bearish

Key Degree for Bearish Bias: 158.87

Preliminary Goal: 139

Secondary Goal: 128