A very clear 5-wave decline can be counted in USDJPY, starting from the orthodox top at 104.92, where the fifth wave truncation ended. The corrective pattern after that decline looks like an A-B-C zig-zag with wave C ending diagonal. Wave 5 of C may reach the 102.90 – 103.10 zone. A resumption of the downtrend should be expected afterwards. An aggressive trading approach in this situation is to sell short somewhere in the above-mentioned zone, with a protective stop at the point where wave 5 of C would become longer than wave 3 of C – 103.20. The more conservative way to trade it is to wait until price falls below the bottom of wave 4 of C. In both cases 100.70 is a good first target for USDJPY. The possibility of going even lower should not be underestimated.
USD/JPY big picture here