USD/JPY

Medium Term Trend: Plunging to 115.80 and closing well below 116.50 suggests that the dollar has topped at 117.40. We have now retraced 50% of the rally from 114.00, so we expect that there will be some consolidation and correction from 115.80 (allowing for a dip to 115.30 first if momentum carries it lower) Rallies should now be capped at 116.50/60 and this would be a good place to sell for another test of the low 115's

Strategy today: Buy dips to 115.80/30, stops below 115.20. Sell rallies to 116.40/60, stops above 116.80.

Chart: Allow for a rally to 116.50.