Then USD/JPY rallied to 125 last year and subsequently made a move down to 98. Many pundits tell us that the JPY is doomed, so what to expect from here from a long term perspective ?
My preferred scenario is - because the move down to 75 crucially unfolded in 3 waves - that we're in a large wave 4 (see historical chart) which will unfold as an expanded flat. An expanded flat typically completes just beyond the extreme of wave A (147.67) so 150 looks like a proper target to me. After wave 4 is complete the Yen will make huge gains in a fifth wave.
(An alternative scenario is that this large wave 4 unfolded as a running flat. In that case wave 4 completed at 125 and a top is in place which seems unlikely to me but can't rule it out)
