There is a rounded top in JPY and trends have turned down but this area just above 102 represents a critical support area and could mark the completion of wave-(4) ahead of one more push to marginal new highs. The 102.20/101.70 zone is a cluster of Fibonacci retracements. This correction has now exhausted the limits of time in terms of proportion to the wave-(2) correction so a reversal today is needed to promote this bullish outlook. Key resistance to overcome today is 102.54/86 which are the recently broken pivots. Support remains critical at 102.20/101.71. Above 102.86 adds weight to the correction idea and is neccesary in the face of negative trends and the aforementioned rounded top. Conviction: Medium Trade: Flat. Correction unfolding, look to add in due time at the expected wave-C low. Levels: Support – 102.22, 102, 101.71 Resistance – 102.54, 102.86, 103.59
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Nomura