The correction from 96.71 in JPY is more complex than the triangle that we’ve outlined over the past weeks and the triple divergence between price and RSI suggests that this a larger degree consolidation following a complete 5 wave rally from 77-96.71. This pullback can target the previous 4th wave consolidation lows which also align with a cluster of Fibonacci retracements at 90.85. (ch1) S/t, prices are threatening to break two key uptrends at 93.85 &93.60 respectively; these trends are important because they have been tested repeatedly since November and January. A close below 93.60 leaves a vacuum of support down to the February low at 90.88; he descending highs and pivot lows at 93.57/53 suggest that a break is likely. In order to neutralize this bearish pattern, a break of the 94.91 high is needed. Going forward, the key range for the next larger move is 94.91/93.53. (ch2) Levels: Support – 93.85, 93.60, 93.53 Resistance – 94.91, 95.50, 96.13
Nomura