[B]Commentary:[/B] The dominant pattern in the USDJPY remains the 3 wave decline from 124.13 to 120.97, which is why we have remained with the bullish count. As long as 120.97 remains intact, the structure in the USDJPY is bullish.
Shorter term, the rally from 120.97 is an impulse and therefore likely wave 1 (or a) in a new 5 wave bullish sequence. A push above 122.61 gives scope to a test of 123.18, which is the 100% extension of 120.97-122.61/121.55. Longs should keep risk tight at this level but we expect a rally through 124.13 in the next few weeks.
[B]Strategy:[/B] Bullish now, against 120.97, target a break above 124.13, target TBD