The pullback from 104.92-103.86 reached a cluster of Fibonacci retracements expected to halt the decline. Now prices are rallying towards extension objectives between 105.14/93 to complete wave-B in a large range-bound correction. Once wave-B completes, we’ll shift our focus to one more sharp decline for wave-C. S/t, today’s upside targets are 104.92 and a minor extension target of the wave-a rally at 105.14. Support surfaces at 104.48 and then critically at 103.86. A new high above 104.92 is needed to complete the unfolding a-b-c rally off the 102.86 low. Conviction: Medium Trade: Flat. Correction unfolding, look to add in due time at the expected wave-C low. Levels: Support – 104.48, 103.86, 102.86 Resistance – 104.92, 105.14, 105.34
Read the full report: USDJPY
Nomura