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USDJPY reversed nicely higher this week, now already trading well above the upper trend line of a corrective channel connected from the 99.00 swing high.

This breakout is a confirmation for a change of trend: from a temporary bearish direction to a bullish view.

As such, we believe that the corrective three wave decline in wave 2/B is complete at 96.92 and that prices are moving up in wave 3 or wave C. Both waves, C and 3 are motive waves which means that we expect a five wave rally from the end of wave 2/B so that the pair is expected to revisit the zone above 99, possibly even the 100 psychological level.

In the near-term however, we could see a pull-back to 97.90-98.10 region in wave (ii) before the uptrend resumes.

usdjpy_oct_31_4h elliott wave technical chart analysis for forex trading