Bank of Japan has adopted negative interest rates this morning and that could be a game-changing decision. Therefore, we are going to watch the weekly chart today to get the right perspective. Our preferred count since late December 2013 shows that the pair will remain flat. A breakout above resistance at 132.44 will indicate that this expanded flat ended at 126.05 in mid-April last year. All price actions are part of a new impulsive structure since then.
A breakout above 132.44 will call for a rally towards 134.59 before a correction occurs. However, in the longer term we will be looking for much higher levels.
Our stop at 130.25 has been hit and we should assess the situation before opening a new position.