USDJPY the big picture

USDJPY is showing a strong correction after a major impulse on the weekly time frame. I believe that price needs to test 95 first, before we will see a major long term reversal. The yellow box shows the dangerous zone we are in at the moment. Wave 4 in Blue might be in need of another leg higher or on the other hand might be over already. We see the 100.9 zone tested several times now and the market is setting up for an impulse on lower time frames as a result of that. You can have a look at my previous post in terms of what bullish and bearish scenario's there are. If we break lower it will be an acceleration lower towards 95. If we hold we will retest 107 again.
We have FOMC later this week and fundamentals matter, it won't surprise me to see the test of 95 once the market is finally convince that the FED can't hike rates like we said from the moment the FED announced it. (doesn't have to be this FOMC meeting) Then the BoJ has to respond and everything will be back to normal because Forex is relative. But that's just 'guesstimating', let structure show us what's next but keep these levels in mind because the weekly time frame is the leading structure and everything on lower time frames is noise until we reach either 107 or even better 95.

updates on lower time frames will follow

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