Commentary: We wrote yesterday that “the USDJPY is very close to the 38.2% and may have reversed at 111.55. A new high (above 111.55) would make the rally from 109.12 in 5 waves and suggest that a larger rebound is underway. Under that scenario, 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
Strategy:Flat