Japanese Yen Approaches Important 118.00 Figure

Commentary: The risk of a reversal is high as the USDJPY closes in on 118.00. 118.12 is the 100% extension of 111.59-117.12/112.59. A rally to 118.12 would possibly complete larger wave 2 within a 5 wave bear cycle that began at 124.13.

Still, there is no sign of a top yet and a rally much beyond 118.00 would suggest that the USDJPY is headed to the next potential resistance closer to 120.00 (119.34/84).

Strategy: Flat