$JPY has now entered the correction target zone; this is the area of the previous 4th wave between 103.38/101.63. The 38.2% retrace of the 96.94-105.44 rally is at 102 which is also within the target zone. (d) S/t, a small head & shoulders top projects further weakness to 102.39 near-term. Resistance comes in via the neckline at 103.97. For today watch for a move below the 103.40 level to clear a path for 102.39 with neckline resistance surfacing at 103.90/97. (240m) Conviction: Medium Trade: Flat. Unattractive risk/reward, range expected Levels: Support – 103.38, 102.50/39, 102 Resistance – 103.90/97, 105.34, 105.44
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Nomura