Comment
USDJPY has had a strong day today and managed to break above
a significant short term resistance level (see chart1).
If things continue to move in the same direction I reiterate
my target of 110 (chart2 for the details). The Nikkei had a similar move today
so this reinforces the idea that the consolidation that started in May has run
its course and the index/FX will be moving higher in the coming weeks.
A close below 94 would invalidate my analysis.
Analysis
Prices have moved strongly above the diagonal resistance
line that has contained price action since the top in May. MACD has
broken its resistance a week or so ago, giving another good warning signal that
the same may happen to price.
From an Elliott wave perspective we have completed a wave 4
so we should continue higher before the movement can be considered complete
Chart1
The weekly chart clearly shows how the wave 5 target also
coincides with a long term resistance level (not shown, is the white line on
top) increasing the probability of 110 as final target.
Chart2
