USD/JPY chart (below) offers strong evidence for Nomura's technical view for 'the dollar is topping' theme.
"Last week we called for one more push to 116.52 to complete a 5-wave cycle from 105.23. The rally to 116.10 although short of the target, offers equality between waves-((1)) and ((5)). The last 4 highs in prices have also seen a decline in RSI momentum which further supports the outlook for a tradable top in USD/JPY," Nomura notes.
"S/t, below 115 is needed to promote the correction call and the next support after is 113.86 & 113.23," Nomura argues.
"Resistance is 116.00 and then 116.52. The initial zone for a 3-wave correction is 112.67/110.67," Nomura projects.