The USD/JPY is trading higher, and is now forming a much sharper and extended pull-back from 93.78 than previously thought.

However, the rise is still in three waves with wave C now approaching the important resistance area at 101.50-102.00, where we can see 78.6% retracement of wave A)/1) as well as wave A=C level.

This is a very important zone for a possible turning point. Only an impulse sell-off from here and back to 99.00 will confirm our bearish bias.

Forex Analysis by Gregor Horvat at ForexPros. com