USDJPY continues to correct as proposed by marking time in a sideways, triangle correction. With 4 legs complete only a Wave-e pullback is necessary to complete the pattern. We expect an upside breakout to lead to a completed 5-wave rally from 77.44 and then another more substantial correction from higher levels. S/t, a pullback to 82/81.70 can complete the coil and then be followed by a break of resistance at 82.75/85. Upside targets range from 83.10-85.74. Long-term, neckline resistance surfaces at 83.10 and the triangle projection target is 83.66; these levels are the initial focus ahead of the 2012 high at 84.18. Levels: Support – 82.34, 82.00, 81.70 Resistance – 82.85, 83.10, 83.66
Nomura