FX.co ★ Elliott wave analysis of USD/JPY for April 22, 2022

USD/JPY broke the long-term downtrend line in March, which we addressed and now has broken above the inverted S/H/S neckline at 124.19, which calls for a rally towards the S/H/S target at 173.16 in the months ahead. On the way higher towards the S/H/S target, we see strong resistance at 151.65, but it will likely be just a temporary bump on the way higher.

The break above resistance at 124.19 is a major shift in the long-term trend of the JPY for the first time since 1978 we are seeing higher highs and higher lows indicating more upside to be seen in the coming months and maybe years ahead. The change in trend isn't any surprise as we already placed wave [5] at the 75.57 low years ago, but the resistance at 124.19 was broken that easily wasn't in the cards and the implications for the global economy is huge.