USDJPY bounced higher from a horizontal support shelf created from August – September 2024.
Using Elliott Wave Theory as our guide, the model suggests a breakdown below the support shelf is looming nearby.
I’m keeping an eye on 144.55. Below this mark, the risk remains high of a breakdown in a wave (iii).
Even if 144.55 is hit to the upside, wave (iii) is the favored model we are following.
USDJPY is dancing on top of the support shelf now. May break below and revisit the support shelf from the underside. Once the break appears, downside targets are large.
128 becomes the first target with even lower levels possible.
EURUSD, GBPUSD, USDCAD, and AUDUSD appear to be reversing too. This means EURJPY, GBPJPY, CADJPY, and AUDJPY may be ready to trend lower.