The rally through 103.76 invalidated our call for a wave-[4] triangle but ample resistance between 104.20/45 is expected to contain the current rally. First, from an Elliott perspective the move higher from February is tracing a choppy advance and this fits as a wave-B within a larger correction. Two projection targets align between 104.00/20. The second daily chart shows an ideal geometric pattern that is still short of its target confluence zone between 104.20/45. A rally to this zone followed by a failure would signal that a larger decline is set to unfold. Conviction: Med Levels: Support – 103.44, 102.98, 102.80 Resistance – 104.10, 104.20, 104.45
Read the full report: USDJPY
Nomura