A decline from 125.80 to 116.15 is in three waves with first minor three subwaves in A, so we think that pullback from the last few months was nothing else than just another correction within ongoing uptrend that is in play already since 2012. In fact, reversal up from 116, at the end of August, was sharp so it belongs to a minimum three wave rise, but ideally we will see an impulsive rally. However, in either case we see third wave up C/3 in progress. That said, we think that rally from last week can continue towards 124 minimum, but ideally there will be an extension to new highs.
USDJPY is moving nicely higher for the last two weeks, it broke sharply above 120.36 so we are confident that pair is in wave C/3 headed up to 122 and even 123 area. Any pullback in this week can find a support at 119.60-120.25 region.
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