USDJPY has turned sharply lower from the projected 5th-wave target area, potentially driven by suspected BoJ intervention. This development increases the likelihood of further downside. If bearish momentum strengthens, price could extend significantly lower, opening the door for a deeper decline.
USDJPY has now completed a clear five-wave decline from the highs, which confirms that a temporary top is likely in place. Following a completed five-wave impulse, a corrective retracement is expected. Price may now recover toward the 161.64–161.95 resistance zone, which represents the first key area of supply. A secondary resistance level is seen at 162.30, where sellers may re-emerge before a potential continuation of the broader downtrend.
Overall, the structure suggests a short-term corrective rebound within a developing higher-degree bearish phase.
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