FXStreet (Barcelona) – Gregor Horvat of EW-Forecast, notes technicals suggest that USD/JPY looks ripe to shift higher, but will require a move above 124 to go bullish again.
Key Quotes
“USDJPY gaped lower yesterday and fell to a new swing low, to that base channel that can react as a support in fourth wave. Notice that decline from the highs is still in three waves so move is considered as corrective, especially if we consider a triangle in the middle which must be wave B), as triangles can never occur in wave two position. With that in mind, we believe that sooner or later USDJPY will turn higher again but rise above 124 is needed to confirm bullish prices in progress.”
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