FX.co ★ Elliott wave analysis of USD/JPY for January 5, 2021

USD/JPY has been in a descending correction since January 2017 where it peaked at 118.61. After a four year correction is looks as this correction finally is very close to completion and could be starting the next impulsive rally higher to 124.45.

Short-term a break above minor resistance at 103.90 will indicate that the correction from January 2017 has completed, while a break above resistance at 105.65 confirm the completion and calls for a quick rally to 111.76 and ultimately higher towards the long-term target at 124.45

Trading recommendation:

Buy a break above 103.90 for a long-term rally towards 111.76 and higher.