USDJPY has just completed a five-wave bullish Elliot Wave impulse move with ending diagonal pattern in wave (v). According to the theory, a three-wave pullback in the opposite direction follows every impulse move.
In USDJPY's case, the impulsive breakout of the ending diagonal trendline signals the completion of the impulse and the start of the correction. Price has the potential to retrace 50% of the previous impulse move, a possible 1:2 RR trade setup.