Commentary: “Bigger picture, the USDJPY has traced out 5 waves lower (which is large wave 1)from 124.13 to 111.59, indicating a large degree trend change. Since the low at 111.59, it is our contention that an A-B-C correction is unfolding as large wave 2. Within this A-B-C, wave C might be underway from 113.86, targeting 119.34 (61.8% of 124.13-111.59) to complete wave 2 from 111.59. The best opportunity will be to the downside for wave 3 lower so look for a top and reversal near 119.00/50”.
Even shorter trerm, wave b of B could crop under 113.86 in order to test the 61.8% of 111.59-117.12 at 113.70 (or the 78.6% at 112.78) before wave c of B advances towards the 119.00 level. If this proposed count is correct, then the declice should accelerate soon and price needs to remain below 116.61 (preferably below 116.10).
Strategy: Flat (waiting for wave 3 bearish opportunity)