FX:USDJPY U.S. Dollar/Japanese Yen
Strong move of the low defined by clear sharp rising narrow channel still continues to contain the USDJPY but is now approaching and intermediate top in the area around 94. The a noticeable correction is likely to take place in the for of wave 4 in the current cycle before continuing higher. Whilst counter trend trade might be possible by shorting around 94, I would rather wait for the retracement to 90 area or lower to go long. Most other pairs likewise could also show similar pull back. Longer term YEN will continue to remain weak for the foreseeable future against all major currency pairs.
When I published the USDJPY chart, I anticipated an intermediate top around 94 which was a hit. Now it appears it could at least make normal retracement. For the checking to correlation I have looked at JPN 225 index and note that it too is in similar state with wave counts little easier, suggesting a similar move in USDJPY could equate to 90 area for 23.6% and 88 area for 38.2% retracement of the sharpest rise in USDJPY. This is likely to take several days in contrast to just day or 2 whilst on the way up.
Intermediate top referred to was formed and the retracement expected also formed, though in less time than expected. But nevertheless profitable trade against the main trend which usually carry high risk. Most YEN pairs will continue much high as per the comments from Japan;s Ministry of Finance, that they will be serious in their efforts to see JPN225 his 13,000 soon. In line with the the YEN will continue to weaken with positive correlation to JPN225.I will post an updated chart later with details of possible target of the top significant top.