USDJPY – The pair is in bears’ control
USDJPY had been in a corrective wave (4) from its Nov’11 low at 75.60. Given an ABC wave completion at 84.20, odds favors a retest of the strong 76.00/75.60 support. A break there would signal a fifth wave targeting 75 and below. The 80.65/ 81.80 resistance needs to be cleared to shift the focus back on 83.30/84.20.
The corrective rally from 77.65 may have exhausted at 80.60 with bearish reverse divergences in daily RSI. Downside focus remains on 77.90/77.65 now. A break of the support would target key 76.00/75.60 support. The 78.80/79.15 resistance is likely to cap bounce attempts in the near term. A reversal above however refocuses on 80.10/80.65.
