USDJPY might be preparing to push towards 108.30

USDJPY has rallied past initial resistance at 107.22 and is seen to be pulling back at the moment. In the short term, focus should remain for a potential rally towards 108.30, until 106.00 remains intact. The wave structure highlighted here since 111.75 highs is as follows: The drop from 117.75 through 106.00 was an impulse, Wave 1 on the chart. The subsequent rally reached fibonacci 0.618 resistance around 109.85, Wave 2 on the chart. If the above counts are correct, USDJPY is progressing lower in Wave 3 since 109.85. Bottom line: USDJPY needs to stay below 109.85 for the above structure to hold. We favor short term bullish move towards 108.30 against 106.00. Then reverse.

Long, stop @ 106.00, target @ 108.30.

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