Japanese Yen Testing Highs (USDJPY Lows)

[B]Commentary[/B]: We still maintain that the strong rally from 104.97 is probably a c wave that will complete a larger second wave as an expanded flat. If this count is correct, then price is expected to exceed 107.92 and resistance should be strong in the 108.33 area. We will look to return to a bearish bias following a rally through 107.92 (against 110.11) for a drop to our objectives that are below 100 (near 97). Near term, the pattern is not all that clear but this is what one would expect in a corrective sequence. The path could be lower prices and a test of the mid 105s before a thrust higher to complete the correction. Another reason to favor one more advance before the next big down leg is that the short term pattern resembles an inverse head and shoulders.

[B]Strategy[/B]: Flat