Yesterday we focused on the possibility of a developing bullish triangle and the need for a break through 102.86 to promote this outlook; above 102.86 would also negate the bearish alternate analysis. No confirmation yet but the a-b-c rally off the lows is still the base case. Wave-a was a sharp impulse from 100.76-102.70 and following this wave-b correction another sharp thrust targets 103.70. S/t, support is still 101.77/47 as this can mark a floor for the wave-b pullback. The lows at 100.76 are critical to keeping this near-term bullish outlook intact for $jpy. The reason for the alternate, bearish outlook is the fact that the rounded top & trendline break are still adding weight to the bear side. Levels: Support – 101.77, 101.47, 100.77 Resistance – 102.70, 102.86, 103.44/70
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Nomura