Commentary: We are bearish on the USDJPY and price action is telling us that that we are correct in our position. The clear break of the trendline drawn off of the 4/19 and 5/11 lows and a 5 wave decline from 122.13 gives scope to more losses.
The entire rally from 115.14 may be a double zigzag (W-X-Y - shown on the last few day?s charts) as well. Any rally should unfold correctively (3 waves) and resistance should be strong near 121.46 (prior 4th wave high). We view this as an opportunity to get aggressively bearish. Strategy: Bearish at 121.40, against 122.40, target TBD