The bull flag from 9/10 and the bullish falling wedge from 9/30 have resolved higher. The strong momentum (hourly chart) is indicative of a new impulsive rally; our initial interpretation is that the current pullback from 98.55 is wave-2 and the next new high will be part of a strong wave-3 rally.
S/t, support for this current pullback is 97.92 where the previous 4th wave low bottomed. The problem with waiting for a pullback in an impulsive rally is that the uptrend can easily start to extend; a break of 98.55 is a signal that $JPY is ready for a move to the next upside pivots at 99.13 & 99.66. One reason we look for a consolidation from current levels is that the wedge target line has been hit over night.
Levels: Support –98.25, 97.92, 97.75 Resistance –98.75, 99.15, 99.67
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Nomura