When looking at the daily chart or the 240min below, the action over the last 3 days has formed a bull flag to complete a small Wave-iv correction. In order to confirm the bullish implications a break above 93.73 is needed. This rally is all part of a final Wave-V higher that can take JPY to new highs and at a minimum to the May „10 level of 94.99. S/t, a break of 93.73 targets a zone between 94.22/63 the first is an extension target while the latter is the bull flag projection level. This zone is also the level of the last 2 pivot highs so minor resistance is expected in the 94.22/77 zone. Important support going forward is the pullback low (92.92): beyond that 92.75 is critical to the bullish call. For today we expect a break of 93.73 to be followed by further gains. Levels: Support – 93.00, 92.92, 92.75 Resistance – 93.73, 94.22, 94.69
Nomura