We remain bearish as long as the USDJPY is below 105.70.
The potential for a sizeable decline in a 3rd of a 3rd wave within the bear cycle from 105.70 does exist. We wrote yesterday that “very near term, a poke through 104.04 is possible before the larger decline resumes.” That ‘poke’ has turned into a 100+ pip rally, which has us nervous but bearish potential warrants sticking with this count. The other side of a former support line has acted as resistance today.
STRATEGY: Bearish, against 105.70, target TBD