USDJPY – A wave 3 rally is in progress
USDJPY had been in a larger corrective uptrend from its Nov’11 low at 75.55 and the uptrend could test the 0.9500/0.9900 resistance on multi-month basis before renewing long term downtrend ( Major resistance is at 101.70). Weekly inverted H&S pattern target is at 92.35. The pair should not close below H&S neckline around 82.85 to maintain the bullish view. A reversal below 82.85/81.70 however would signal retest of the strong 77.10/75.55 support.
A powerful wave 3 rally is in progress. Immediate term support is at 86.50/85.65 and the uptrend could extend if the support holds. A move above 87.30/88.00 targets 89.00/90.00 next. A reversal below 85.65 signals a wave 4 pullback and corrects back toward 84.60/83.85 before stabilising.
