USDJPY – Near term strength could be corrective

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 rally from 77.65 had exhausted at 80.60 in an EW abc corrective wave but bulls are attempting to stabilise from 77.90. The strength should be viewed as corrective. Upside focus is now on 79.40/79.80. A move above tests the tough 80.10/80.60 resistance where bears would fight back. A reversal below 78.60/77.90 would renew bears. A break above 80.60 however extends the recovery.