On the 4h chart of USDJPY we can see a strong recovery taking place from around the 108.12 level where a bigger three wave A)-B)-C) pattern was completed. That said current reversal is viewed as wave 1, the first wave of a possible bigger five wave development that may take weeks to unfold. As such, more upside will be expected after a pullback down in wave 2 that may show up, once wave 1 finds a top. Support for the upcoming wave 2 may be found around the region of support at 111.58/112.22. That said, once the lower channel line gets breached that is when wave 1 will be regarded as completed and wave 2 will be in play.
USDJPY 4H
