Japanese Yen Should Range Near Term

[B]Commentary[/B]: “It is our working assumption that the USDJPY is working higher in a C wave towards the 128.00 area over the next few weeks/month. The 78.6% of 135.13-101.67, the 100% extension of 108.98-122.17/115.14, and the 100% extension of 101.67-121.39/108.98 are between 127.97 and 128.70.”

We wrote yesterday that “near term, 122.82-123.30 should provide solid support.” The USDJPY slipped to 123.09 this morning and has shot up past 123.50. Once 123.73 is broken, we expect a larger correction, so now is not the time to position for a run to 128.00. [B]Strategy[/B]: Bullish at 123.30, against 123.09, target 123.73