The big question now for USD/JPY

Further to earlier updates on the USD/JPY, coverage here last week noted the rebound in the dollar, to almost reach an ideal first corrective target, at 149.44. As you know by now, the dollar stalled just a few pips short of meeting that target to the exact point. The high seen last week was set at 149.39 and of course since then the USD/JPY has fallen back to a low set earlier today, at 145.19. So, now that a potential wave 2 correction has played out does that mean we are headed for another wave 3 lower from here on? Well, that could be the case, but there is considerable margin for error on that potential. The low reached on August 5 was set at 141.70 and any break from on below that level will surely deliver a deeper fall below 140. It is of course all in the balance still, but the failure to rebound above 149.44 last week is a potential warning sign. The USD/JPY is currently trading at 146.02