Yen Technical Outlook

Price action over the last few days in the USDJPY has been brutal. Focus on the big picture and let things fall into place (as opposed to focusing on the details and clouding the big picture). The entire advance from 95.72 has now retraced 50% of the drop from 124.13. The rally from 95.72 is clearly NOT impulsive as well.

Both of these points indicate the likelihood of an amazing shorting opportunity against 124.13, eventually. When will the corrective advance from 95.72 end though? The second leg of the correction would equal the first leg of the correction at 116.61, which is just below the 78.6% of 124.13-95.72 at 118.05. An area before that which could produce a top would be the 61.8% at 113.28. Shorter term, one could play a breakout above 110.65 for a test of one of these levels.