USDJPY has seen a nice recovery in the last few weeks, but prices are coming out of a previous triangle formation in wave B, meaning the upside could be limited within wave C. Especially if we also consider that recovery from 2025 lows is coming into an important 61-78.6% Fib area, where recently bulls slowed down a bit.
We are already seeing some reversal, so it wouldn’t be a surprise to see some new leg down in XXX/JPY pairs too. Also, keep in mind there are still some big unfilled gaps, and we can also see one at 149.20 on USDJPY, which could act as a magnet zone in the weeks ahead.
It’s important to add that US yields are coming down, as investors move into treasuries after the recent stock crash, and this can keep JPY supported.
GH
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