[B]Commentary[/B]: We wrote yesterday that “we are publishing a 5 minute chart this morning to show the potential bullish structure that is forming from 122.23.” As it happened, the USDJPY broke higher from a bullish triangle, which means that this rally is terminal (will be reversed).
A potential end for this short term rally is 123.72/90, which is the 78.6% of 124.13-122.23/123.72 and the 100% extension of 122.23-123.36/122.77 (rally could reverse prior). A larger complex correction is playing out from 124.13 (W-X-Y). After the reversal, we are looking for a drop below 122.23. [B]Strategy[/B]: Look for bearish opportunity at 123.72/90 against 124.13, targeting below 122.23