There is an a-b-c rally in place from 100.77-103.76 and wave-c unfolded as a complete 5-wave rally. The entire upward correction failed near the 61.8% retrace and is now resuming the decline from January. We have viewed the entire pattern from the Jan high as a large degree correction and with waves-(a) & (b) complete it appears that wave-(c) down is underway. (daily) S/t, there is a bullish RSI divergence that suggests strong support at the 102.50 level as prices are holding above the 50% retracement. If this is indeed wave-(c) of a larger triangle then trade will be marked by a choppy range with a bias to the downside. Resistance for today is 102.73/86; support is 102.42/12. Levels: Support – 102.42, 102.12, 101.40 Resistance – 102.73, 102.86, 102.93
Read the full report: USDJPY
Nomura