Commentary: “The 161.8% extension of 117.92-113.24/115.89 is at 108.30, which is an initial bearish objective. Coming under 111.59 reinforces the bearish bias.” We wrote yesterday that “a small 4th wave (of larger 3) may be unfolding. The corrective rally should be near its terminus as the rally has reached the 38.2% retrace of wave iii and a former congestion area at 113.39.”
The top yesterday was at 113.37 and the USDJPY finds itself over 200 pips lower now. Expect a larger 4th wave correction before the drop to the 108.00 area.
Strategy: Take profit here (we’ll look to short again on a wave 4 bounce)