Commentary: The USDJPY continues to play out as expected. We wrote yesterday that a USDJPY rally should accelerate soon and the scenario that we described last week should play out. That scenario describes a flat ending at 112.59 as wave b of 2 in an a-b-c correction from 111.59.
Wave c is now underway towards the 100% extension of 111.59-117.12/112.59 at 118.12 (this is also close to the 50% of 124.13-111.59 at 117.86). A rally to 118.12 would complete larger wave 2 within the 5 wave bearish sequence from 124.13 and give way to the next leg lower.
Strategy: Remain bullish, against 112.59, target 118.00