Japanese Yen Bearish (USDJPY Bullish) Above 120.97

[B]Commentary[/B]: We wrote yesterday that “the USDJPY bounce from 120.97 is still in 3 waves, but a rally through 122.52 would make the rally a 5 wave affair and strongly indicate that the entire decline from 124.13 was an a-b-c correction. Keep in mind that the longer term structure suggests that an A-B-C correction could extend to 128.00 before the larger reversal.”

The USDJPY pushed through 122.52 to make the rally from 120.97 5 waves, which sets the tone for additional gains. The decline so far has been corrective but additional support is at 121.83. A break above 124.13 is now the favored view, but 120.97 must hold in order to keep the bullish structure intact.

[B]Strategy[/B]: Bullish now, against 120.97, target a break above 124.13, target TBD