USDJPY – Break of wedge pattern signals recovery for a target of 80.60
USDJPY had been in a corrective wave (4) from its Nov’11 low at 75.55. Given an ABC wave completion at 84.20, odds favors a retest of the strong 76.00/75.55 support. A break there would signal a fifth wave targeting 75 and below. The tough swing high resistance at 81.80 needs to be cleared to shift the focus back on 83.30/84.20.
The pair has broken the wedge resistance line with triple bullish divergences in daily RSI. The recovery could test the key resistance at 80.60. A break above could extend the strength toward 81.50/81.80 which is critical for medium term bears. Any immediate term setback is likely to hold above 78.90/78.60. A reversal below however
dampens bulls and refocuses on 77.95 ahead of strong 77.40/77.10.
