USD/JPY" title="USD/JPY" src="https://d1-invdn-com.akamaized.net/content/pic271a41ff741e198cc75be82bd0cc0bad.gif" height="519" width="709">
USD/JPY: 97.45
Short-Term Trend: sideways
Outlook: The market declined bigger than expected but the Contracting Triangle scenario from the May 2013 top remains valid and is still my top wave count here. If correct, wave E should have bottommed or nearly so and a rally should begun this week. As before, only a move abv 101.50 will confirm this bullish scenario and will target the 104.60 level eventually.
On the downside, the key support is the wave C low (95.80). The stop that I had favored for weeks was at 96.80. Now I think we need to lower this stop a bit to at least 96.50 to allow for one more brief and swing decline early this week.
Strategy: Holding long from 98.50 is favored against 96.50