One way to discern a turn is to look for an initial 5-wave advance (the direction of a 5-wave move indicates thelarger trend). USDJPY still has a lot to prove on the daily chart but the hourly chart has so far traced waves-1 to 3of a possible impulse move. A small consolidation above 97.20 can be considered wave-4 ahead of a final moveto channel/pivot resistance at 97.75/95. Once 5-waves up are complete, the next pullback would offer thestrongest buying opportunity for the next move higher.
S/t, support is recent pivots at 97.25/20. Resistance is 97.47 but our bias is that this level will yield to newhighs and see a further rally to the old pivot at 97.76. Extension targets indicate a stronger rally to 97.95 where thechannel downtrend from early September comes in to play.Levels: Support – 97.25/20, 96.85, 96.57 Resistance – 97.50, 97.95, 98.75
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Nomura