[B]Commentary[/B]: The breakout yesterday above 122.17 looks like the real deal. It is our working assumption that the USDJPY is working higher in a C wave towards the 128.00 area over the next few months. The 78.6% of 135.13-101.67, the 100% extension of 108.98-122.17/115.14, and the 100% extension of 101.67-121.39/108.98 are between 127.97 and 128.70.
In the short term, the USDJPY appears to be in a small 3rd wave within a 5 wave sequence that began at 120.75. 123.17 would be the 161.8% extension of wave 1 of this sequence and a corrective setback towards 122.50 is expected to unfold in a 4th wave before a 5th wave higher. We will look to align with the bullish breakout on a 3 wave correction following the completion of the 5 wave rally from 120.76. The short term chart is above. [B]Strategy[/B]: None