The USDJPY has rallied as expected but failed to reach even the 38.2% of the 5 wave decline (104.15). With such little retrace (and with a sentiment extreme in place…see COT), we subjectively favor the idea that a larger more complex correction is underway. If this is the case, then the subwaves will be 3-3-5; a flat. In a flat, wave B (in this case X), will retrace most if not all of A. Therefore, a test of the 101.40 low is certainly possible before the rally in wave Y completes the correction. The 61.8% of 101.40-103.58 at 102.24 is potential support.
STRATEGY: EXIT LONG
