USDJPY – The pair may be in terminal stages of a wave 3
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.
The powerful wave 3 rally may be in its terminal stages. Potential minor bearish divergences in daily oscillators signal caution. Upside focus is now on 89.65. Our intraday wave count suggests that the pair could attempt another up leg if it holds above the 88.40/88.00 support. A move above 89.65 targets 90.00/91.00 (psychological resistance/ Fibonacci projection target) before reversing. A break below 88.00 however confirms a wave 4 correction to test the 86.80/85.65 support area.
