Keep it simple -- the USDJPY has consolidated for in a tight range for nearly a month now and looks ready to break higher. “After spending nearly a month in a tight range, the USDJPY is poised to break higher and test at least the mid 108s. A 61.8% Fibonacci is at 108.50 and a former congestion area is at 108.30. Although we remain long term bears due to the EW structure on the daily, COT data suggests that a more pronounced rally is possible if not probable.” An alternate count is in red and suggests that the USDJPY will exceed 110.11 before bearish potential. One reason that we think a bigger rally is underway is that the structure from 104.97 looks far from complete -- as do the rallies in the Yen crosses. Risk can be moved to 106.99. Potential support is at 108.
STRATEGY: Bullish, against 106.99, target TBD
