Commentary: We wrote yesterday that, “we expect a new high (above 121.86) followed by a reversal.” The USDJPY pushed to 121.88 Friday before coming off 70 pips.
There is no sign of a reversal but coming under 121.18 before touching 121.59 would make the decline from 121.88 impulsive (5 waves down) and signal that lower prices lie ahead. The entire rally from 115.14 may be a double zigzag correction. We wish to get bearish on a decline below 121.18. Risk is 121.88 and we?ll have to watch how the decline unfolds before we can limit? profits. Strategy: Bearish if 121.17 prints before 121.59, against 121.88, target TBD