How far can  the greenback rally against the Japanese Yen?  We are expecting a move towards 120 levels before retracing back below 100.00 key psychological level in the medium term.

 

 

Let’s have a look at the technical side.

 

 

 

118.38 remains a strong resistance in the near term which coincides with the 261.8% and we might see a pull back  for a wave 4 as per Elliott wave principle before having another final leg (wave 5) to the upside towards 120 levels. – see below chart 1

 

The move towards 120 levels will complete wave B of  A-B-C correction before igniting wave C to the downside below 100 levels in the medium term – Patience is the key  - see below chart 2

 

 

Support levels in the near term  : 117.52 followed by 116.90 for a target towards 120. (Invalidation level – 116.00)

 

 

Fundamental News:  BOJ Interest rate Decision this coming Friday

 

 

Chart 1 – 120 mins

 

Chart 2 – Daily

 

 

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