Japanese Yen Targeting 111.59?

Commentary: We wrote on Friday that "a new low below 114.80 at the least is expected as the rally from there is clearly a 3 wave advance ending in a spike high last night at 115.63. Favor the bearish side as long as price is below 116.46 as the decline from there is impulsive. Very short term, favor the bear side below 115.63.

A break below 114.80 places focus on 114.35 ans subsequently the 61.8% of 111.59-117.12 at 113.70." The USDJPY plummeted Friday and opened this week lower, trading to 112.59 last night. To this point, the advance from 112.59 is in 3 waves and fits as a 4th wave correction in a 5 wave bearish cycle from 116.46. Expect at least a slight new low (below 112.59), likely today. Since a drop under 112.59 would complete 5 waves, risk of a pullback would be high at that point.

Strategy: Flat