Japanese Yen Breaks from Consolidation

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