USDJPY is at the lows as expected after recent consolidation above 103.50 that we recognized as wave B that belongs to wave 5). This wave 5) can be final part of a higher degree ending diagonal formation, known also as a wedge that can cause reversals. However, for now is too soon to say that pair will rise but will definitely be interesting for bulls if they can recover impulsively back to 104.50. Lets keep in mind that “holiday reversal” may price action may also cause some interesting end-of-the-year flows.
In such case we will look for a bottom in place.First support is here, second is at 102.500, then 102.00.
