$JPY continues to work towards our target zone below 98.00 as it completes wave-E of a 4-month triangle. At 97.08 wave-E would be a classic .618 X wave-C (a relationship already present between waves-B & D). The 97.40 level is the 1.618 extension of wave-a down and represents the initial downside target.
S/t, a head & shoulders top is in place and once prices clear support at 98.54 implies a move to 97.61. Resistance is now 99.02 and then 99.98. The market is nearing a major buying opportunity as levels below 98.00 satisfy a complete wave-4 triangle that is expected to lead to a sharp rally to new highs above 104. Levels: Support – 98.51, 97.90, 97.61/40 Resistance – 99.00, 99.52, 99.98
Read the full report: USDJPY
Nomura