[B]Commentary:[/B] We wrote yesterday that "From an EW standpoint, a double zigzag may be unfolding from 124.13. The first a-b-c decline (wave W) is from 124.13-120.97. Wave X is from 120.97-122.60 and wave Y is underway now (will either be an a-b-c or i-ii-iii-iv-v).
Waves W and Y would be equal at 119.45, very close to the mentioned 50% fibo at 116.64 and 1 pip away from the 5/11 low at 119.46. We are looking for a decline to this level." The USDJPY just dropped to 119.62, very close to our objective, so be wary of chasing it lower. A bounce could test resistance at 120.74.