[B]Commentary:[/B] We wrote yesterday that “5 waves down from 124.13 appear complete so we expect this rally from 111.59 to unfold in a corrective manner and challenge the mentioned Fibonacci reversal zone (117.86 or 119.34). Former support at 117.20 may now be resistance.”
The USDJPY tested 117.00 this morning. Viewing the very short term chart (15 min) in order to see the structure of wave c (from 113.98), it looks like one more high will be registered (above 117.12) before a top and reversal. 117.89 is a likely reversal point. This is the confluence of the 50% of 124.13-111.59 / 100% extension of 111.59-115.50/1113.98.
[B]Strategy:[/B] Look for a top and reversal near 117.90