Japanese Yen Returns With a Vengeance

[B]Commentary:[/B] We wrote yesterday that "larger wave 2 or B is expected to unfold from little if any below 117.18 and makes its way to the Fibo reversal zone of 119.83-121.47. The break above 119.09 indicates that the corrective wave is in its final leg towards 119.83-121.47.

Wave c of the correction (from 117.95) would equal wave a (117.17-119.09) at 119.87. This level is reinforced by the 7/25 low at 119.79 (yellow circle). In summary, look for strong resistance just ahead of 120.00." The USDJPY has reversed after the high made yesterday at 119.83. Price is likely to continue lower (below 117.18). This decline may be a 5th wave so be wary of being too aggressive on a break below 117.18.

[B]Strategy:[/B] Bearish against 119.83, targets 117.18 and TBD