There was a bullish hammer reversal yesterday below the flag/pivot breakdown level; a close above 101.62 today would confirm the reversal and suggest a bear trap below 101.40 but it’s critical to see confirmation today. In order to reassert our bearish $JPY outlook will need to see a move back below 101.35 along with RSI below 40. (daily) S/t, we continue to view this move from 102.36 as a wave-1 impulse but the extent of the correction (61.8%) has reached reasonable limits. For today, look for a new impulse lower to carry through 101.35 and reenter the down channel. (hourly) Conviction: Med/High Levels: Support – 101.48, 101.35, 100.82/76 Resistance – 101.62/78, 102.27, 102.36
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Nomura