USDJPY At Important Reversal Area

USDJPY is nearing a very important high and is likely to decline thousands of pips over the coming months.

Back in October 2022, USDJPY reached a pinnacle turning point. In October, USDJPY declined in an impulse wave suggesting the larger trend had turned lower.

The rally since Q1 2023 is a double zigzag, a corrective wave further signaling the larger trend is lower.

Then, USDJPY reversed near the 78.6% retracement level of the Q4 2022/Q1 2023 decline at 145.07.

Since then USDJPY continues to decline in motive waves and rally in corrective waves. If this analysis is correct, then USDJPY is getting ready to break down below the parallel price channel and break 127.

An eventual decline to 118 and 99 is possible as well long down the road.

If 145.07 breaks to the upside, then we'll need to consider alternate counts.

Lastly, consider the rally from 2011 to 2022 lasted 11 years. We are less than 1 year into the decline so USDJPY will likely see more declines than rallies in the coming months/years.