Recent correlations between the Yen pairs and the equity markets have been quite strong. We are starting to see a bit of risk aversion in a pull back a bit ahead of the FED meeting this week on the back of uncertainty over a rate hike. With EURJPY already giving technical signs of bearishness, this pair is primed for a short setup.
The wave count from 137.05 is unfolding as a double corrective structure thus far. We have already completed a and are now in wave y for the second , looking for further downside.
A breach of 136.40 where wave x is marked, would invalid the count and the setup, and therefore stops are kept there. For targets 133.35 has a confluence of the 76.4% Fib as well as acted as a bit of on the left side of the chart. A more conservative target falls at 134.07 which marks the 61.8% Fib of the leg up (132.22-137.05)