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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