The Oct double bottom target of 101.53 was reached overnight; now $JPY has handily bettered both the June and Sep highs clearing a path for our long expect move to 106 slated to occur in Q1 2014. From a wave perspective, prices are in the midst of wave-iii of 3 that is targeting a 1.618 extension at 102.65. (daily) S/t, we expect a small pullback to correct the rally from 99.57-101.92; the support zone is the previous consolidation between 101.36/100.98; that is also the zone of the 38.2% retrace. More critical support this week is 100.44. Once the wave-(iv) correction on the hourly chart completes, focus shifts to the 102.65 target. (hourly) Levels: Support – 101.36, 100.98, 100.44 Resistance –101.92, 102.53/65, 103.74
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Nomura