The 3/3, 101.20 low halted last week’s decline but the bear flag pattern from early Feb is still signaling further weakness. The corrective, a-b-c rally, is expected to resolve with a break of key support at 101.77. An ideal symmetry target for wave-(c) down of the larger decline from 105.44 is 99.09. (daily) S/t, a minor sideways correction is unfolding from minor 101.20 support. Resistance levels to watch early this week are 101.88 & 102.42. Support is 101.57 & 101.20 with the latter level clearing a path for a sharper decline. The alternative, bullish outlook, takes precedence with a rally above 102.42; above that pivot our favored outlook will be for a minor new high above 103.76. (hourly) Conviction: Med Levels: Support – 101.57, 101.20, 100.87/77 Resistance – 101.88, 102.42, 102.86
Read the full report: USDJPY
Nomura