The wave-(4) correction is covering a wide range of prices from 102.86-105.44. Because of the choppy nature of the move lower from 105.44, we expect (once the consolidation completes) to see a final wave-(5) push higher to 106/107 before a much larger correction unfolds. For the coming weeks we’ll look for wave-(4) support to develop at the 102 area. S/t, we have tweaked the outlook and expect a wave-B retest of the 105.44 level followed by wave-C to the target zone between 102.21/101.88. The target zone is where wave-(4) would retrace 38.2% of the previous rally that carried $JPY from 96.94-105.44. Support for today is 103.90, the 50% pullback and old pivot zone. Resistance is 104.92/105.34. Conviction: Medium Trade: Flat. Correction unfolding, look to add in due time at the expected wave-C low. Levels: Support – 103.90/80, 102.86, 102.21 Resistance – 104.92, 105.34, 105.44
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Nomura