Commentary: The count that we were focused on late last week had the USDJPY rallying higher; through 114.65 in order to complete a larger more complex correction from 107.20. However, with the argument strong that the decline from 114.65 is now in 5 waves, we must respect the bearish potential, which is great. The decline fom 114.65 could be the beginning of wave 3 of larger 3 within the 5 wave bear cycle from 124.13. A break below 107.20 warrants a breakout strategy. It is also possible that a small second wave correction is complete at 107.72. Subjectively speaking, we favor a rally to the 111.50 area (about the 50% retrace of 114.65-108.22) in order to complete wave 2.
Strategy: Flat
Al Bawaba
