USDJPY is showing us a three-wave corrective decline called a flat correction, because of only three legs within the first wave »a« and the second wave »b«. We see this correction as completed, especially after that sharp bounce out of an ending diagonal which was located in wave c. In such we expect to see more upside on the pair, ideally in five waves from the lows with a break above the 108.44 level. That said, be aware of a temporary pullback during the uptrend.
An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. Once completed it tends to push price into a sharp reversal into the opposite direction. USDJPY, 30Min
