Commentary: We wrote yesterday that “the best strategy would be to buy dips. It looks like the rally from 109.12-111.76 is in 5 waves. The decline to 110.36 would be a small 2nd wave under this interpretation. Price could erode a bit more to the 61.8% at 110.14 but a bullish stance is warranted against 109.12”
After slipping to 109.77 in Asian hours last night, the USDJPY has rallied impressively in what could be wave c of 4. Expectations are for this rally to exceed 111.76 and test 112.42 before price turns down and heads to a new low.
Strategy:Flat