The JPY has taken a major beating following rate rise in major economies to curb inflation and the ultra easy monetary policy in Japan. Nevertheless, the Japanese Yen Index (JXY) seemed to have found a bottom at about 65.85 in October 2022. The has recovered some ground following the bottom in Oct 2022, and has successfully completed major wave 1 and formed a wave 2 correction which found support on the 200 daily MA. Further the pair has formed a golden cross (cross of the 50 daily MA to the upside of the 200 daily MA). Golden crosses are usually good indication of bullish price action adding a further bullish bias. If the wave hypothesis is correct and the 200 MA holds as support, I expect the JXY to start major wave 3 with potential target of 88. This means AUDJPY, NZDJPY, EURJPY, GBPJPY, CHFJPY as well as the Nikkei225 could all be potentially very bearish.
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