USD/JPY, H4 time frame:
The situation of the USD/JPY pair was discussed last Wednesday. Now, let's see how far the market has come in a week.
Looking at the four-hour (H4) time frame, it shows that the pair continues to develop a large triple zigzag [W]-[X]-[Y]-[X]-[Z]. In its composition, the first four parts were fully done and so, the price began to rise from April 23rd. Therefore, we can assume that the development of a bullish impulse wave (A) has begun, which will give rise to a zigzag acting wave [Z], as was already assumed during the last review. Its approximate internal structure is demonstrated on the chart.
The entire wave [Z] can complete its pattern around the level of 113.24, at which its value will be 76.4% along the Fibonacci lines from the wave [Y]. In zigzag shapes, waves with such proportions are quite common. Thus, there is a high probability of reaching the specified coefficient.
In the short term, we expect growth in the impulse wave (A) to the level of 111.00, which was marked by the wave [Y]. After reaching this level, the price will start to move down as part of the correction (B). Currently, it is possible to consider opening deals for purchases.
Have a profitable day!