Commentary: We wrote yesterday to “expect this bounce (wave 4) to end near 110.72-111.71 (23.6%-38.2% of 115.91-109.12) before a new low in wave 5.” The USDJPY is very close to the 38.2% and may have reversed at 111.55. A new high (above 111.55) would make the rally from 109.12 in 5 waves and suggest that a larger rebound is underway.
Under that scenario, the best strategy would be to buy dips. At this point, the best thing to do is sell bounces against 111.55 for a test of the 108/109 objective that we have focused on recently.
Strategy:Flat