USDJPY – wave-(4) support zone is 107.52/39

Strong support is surfacing between 107.52/39 anchored by the latest consolidation high from mid September. Our outlook is that this pullback is a wave-(4) correction and will set the stage for one final push higher to complete a multi-year 5-wave cycle. From a timing perspective, this correction can carry to late next week. (daily) S/t, the correction has already traced one a-b-c zigzag and based on the new low, appears to be tracing a second a-b-c zigzag. Since uptrend lines from August have broken it is necessary to present the alternate bear case which is that the sell-off from 110 is a wave-(i) leading wedge; this something to watch but not our base case. (hourly) Levels: Support – 107.52, 107.39, 106.81 Resistance – 108, 108.74, 109.23

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