Tuesday’s cycle day & momentum divergence at the high posted a minor high in JPY. The sell-off from the high was not impulsive and promotes our argument that prices are undergoing another bullish correction. From an Elliott perspective, Wave-4 or (4) is forming a triangle ahead of another rally to 104.60 to complete wave-5 of (3). S/t, channel support and the wave-c triangle target contained the pullback so far; the target for wave-d of the bull triangle is 103.26. Support today and this week is 102.16 & 101.64 with the latter being a critical level for the longer term bull trend. Levels: Support – 102.16, 101.63, 101.53 Resistance – 103.26, 103.39, 103.74
Read the full report: USDJPY
Nomura