Wave 'c' of 'ii' is tracking higher today to complete a three wave correction.
We are now back into the target area of the previous fourth wave,
and the 50% retracement level at 1.1297.
These factors suggest that wave 'ii' is near to completion.
I am acutely aware of the level of bearishness against the Euro at the moment,
and that is why I am keeping that alternate wave '2' scenario in view.
But so long as the wave structure points lower,
then I am bearish into large degree wave '3' down.
Watch for wave 'ii' to complete and then turn lower again into support.
Wave 'iii' of (iii) will be confirmed with a break of 1.1175.
I want to start on the 4hr chart tonight.
The market action in cable has been wild over the last few sessions!
So with that in mind,
I am looking at a possible alternate for wave [c] of '2'.
I have shown a possible ending diagonal higher in wave [c] as the alternate count on the 4hr chart.
An ending diagonal will be in five internal subdivisions.
Each subdivision will be in three waves.
If the price breaks 1.3350 again this week,
that will trigger this interpretation.
the alternate count is nearing completion again in three waves
as shown on the hourly chart.
If wave 'ii' is to remain valid,
Then 1.3349 must not break.
Watch for wave 'c' of 'ii' to complete and wave 'iii' down to begin.
A break of 1.2960 will confirm wave 'iii'.
A new count for USDJPY today!
The overall thesis does not change one bit.
I still expect USDJPY to rally for the rest of the year in a large degree wave [C] higher.
But the short term action is very corrective looking over the last couple of sessions.
I think we have seen the high of wave [i] of '3' at recent high of 112.13.
The market is now falling in three waves in wave [ii].
with the choppy upside action this week taking the wave (b) label.
Watch for wave (c) of [ii] to drop into the previous fourth wave low
at about 110.30 again before completing wave [ii].
Wave [iii] up should then begin.