Japanese Yen Towards 111.00

Commentary: We wrote yesterday that “this rally could continue to at least the former 4th wave at 111.75.” With 5 waves down from 117.93-107.20, there is no change in the outlook for a larger recovery. Initial resistance is not until the 38.2% of the drop at 111.30.

This level is defended by the former 4th wave at 111.76. As the structure of the rally unfolds, we will be better able to determine bullish targets.

Strategy: Bullish, move risk to 108.26 (from 107.21), target TBD (probably near 111.30/80)