It appears that $JPY is feeling the pull from both US yields (lower) and stocks (higher) and the net effect has been an ever tightening range for the last 5-months. Our case for a move lower is based on the fact that the move into this range was down (105.44 – 100.76). The chart lays out 2 plausible cases to complete this correction; the first is that wave-iii of C is underway to new lows, the second is that wave-D & E are still yet to complete a wave-[4] triangle. (daily) S/t, the hourly chart shows the bearish outlook with a wave-iii price target at 101.27. Resistance is for 101.65 & 101.98. Critical to the near-term downtrend is a hold below channel resistance at 102. (hourly) Conviction: Med Levels: Support – 101.48, 101.27, 100.82 Resistance – 101.65, 101.98, 102.14
Read the full report: USDJPY
Nomura