We wrote yesterday that “the USDJPY decline from 108.57 could be the beginning of larger wave 3 since the advance from 95.72 is in 3 waves.
If the count above is correct, then wave C is nearly 61.8% of wave A, a common relationship. A clean break of the support line shown above would inspire confidence in the bearish case. A short bias is warranted against 107.75.” The USDJPY has tanked today, confirming out bearish bias. A short term objective is 101.97 although we ultimately expect new lows (under 95.72) later this year. Look for near term resistance at 105.37. Move risk to 106.81
STRATEGY: Bearish, against 106.81, targets 101.97 and below
