USD/JPY eyes at least the 160.40–161.00 zone

Gregor Horvat Wavetraders

USDJPY has rebounded strongly above the trendline resistance from the July highs, suggesting further upside potential toward the 160.00–161.00 resistance area. Interestingly, both our primary and alternative Elliott Wave counts point to this zone as a potential target, although they suggest different paths afterward.

Under the primary scenario, USDJPY could complete its recovery before turning lower in a higher-degree wave C within the broader triangle. For confirmation, we would need to see an impulsive five-wave decline from the resistance area. Alternatively, the correction from the July highs may already be complete, with the recent three-wave pullback representing a subwave two within a bullish structure.

Therefore, we are watching the 160.00–161.00 area closely, as the price action around this key technical and psychological zone could help determine which scenario is unfolding.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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