We thought the 2 trend lines at 97.55 and the corrective nature of wave-E favored the long side in $JPY but Monday’s strong bounce was never confirmed with a higher close. Now we shift our focus to the next wave-E target at 97.08 derived from wave-C x .618 which is a common triangle relationship, In fact the wave-D target was derived in the same way by taking .618 x Wave-B.
S/t, below 97.08 there is further double bottom support at 96.82. Our bullish outlook (106/107) remains intact as long as JPY stays above the wave-C low at 95.81. Downtrend resistance surfaces between 98.55/66; a close above will offer the first signs that a low is in place. Levels: Support – 97.08, 96.82, 95.81 Resistance – 97.53, 98.55/65, 99.15
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