USD/JPY what to look for next
|The chart below shows USDJPY which, has been in an uptrend since 30 November 2021. The current count has wave (i) as a leading diagonal and a sharp correction in the wave (ii) position. Since then, we have rallied higher to levels not seen since 2017.
We believe wave (iii) has finished and, we are moving lower in a three-wave correction to be more specific a zigzag. We are looking for support at the yellow zone - the 38.2 Fibonacci retracement of our recent rally.
Once we reach the yellow zone, we will be looking for confirming price action to signal the market is turning for an entry. We will be targeting 117.000 as our final target and invalidation would be a pullback back into the price territory of wave (i).
Key news events to watch
Wednesday 12 January 2022 USD – CPI m/m and Core CPI m/m.
Thursday 13 January 2022 USD – PPI m/m.
Friday 14 January 2022 USD – Core Retail Sales m/m and Retail Sales m/m.
Res: 115.857; 116.000; 116.352.
Sup: 115.130; 115.000; 114.885.
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