We have revised (in our intraday Bloomberg IB updates) our upside target in USDJPY to 97.96; our initial calculation of 96.74 was too modest and 97.96 aligns nicely with daily channel resistance. (c1) S/t, a 4th wave correction appears complete after a week of sideways trade to 95.45. Near-term resistance is Monday’s 96.71 high and support is yesterday’s pivot high at 96.26. In allowing for the possibility for a more complex correction, the key downside support level is 95.45 but we favor a resolution through 96.55/71 to confirm further strength and a rally to new highs. (c2) Levels: Support – 96.26, 95.45, 94.77 Resistance – 96.55, 96.71, 97.96
Nomura