Commentary: We wrote on Thursday that “the USDJPY hit 114.65 today and has reversed lower in what could be the start of the next bearish leg in a 5 wave bear sequence that began at 117.93. A resistance line drawn off of the June and October highs supports a bearish bias.” The bearish bias remains intact at this point. One possibility is that a larger more complex correction is unfolding and that this decline is just wave X. Potential support is at 111.31 and 110.09 (100% and 161.8% extensions of 114.65-112.67/113.29).
Strategy: Bearish, move risk to 113.29 (from 114.65), target 110.20
Al Bawaba
