Photo by Cullen Cedric on Unsplash
 

USD/JPY is in a nice recovery mode, but with overlapping price action that currently looks like a corrective move up from the 2025 low. Ideally, this recovery fits into an A-B-C structure, with an ending diagonal now unfolding, but already in late stages as price approaches the 155–156 region.
 

USDJPY 4H Chart
 

With that in mind, USD/JPY may be nearing a turning point in the weeks ahead, potentially reversing lower from the upper side of a higher-degree triangle range. If the pattern completes as expected, the pair may start looking down again—possibly toward that unfilled gap around 147.50.
 

Basic Elliott Wave Ending Diagonal / Wedge Pattern
 

Remember, an ending diagonal is a terminal pattern that typically appears in wave 5 or wave C. It’s characterized by overlapping waves, a contracting or sometimes expanding wedge shape, and each leg subdividing into corrective 3-wave moves. This pattern often signals exhaustion, meaning momentum tends to fade as price approaches the final swing high.

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