USD/JPY - First impulsive rally from 75.56 over at 125.86
Because of low volatility in the currency market, I will look at the longer term picture for some of the major currency crosses. The first cross will be USD/JPY as it has hit a long term resistance-line. We have also see a small break above the top of wave  and finally a five wave rally cn be counted from the 75.56 low, all indicating that a larger correction could be developing. What kind of correction, we should be looking for is not yet clear, but the first part of the decline from 125.86 has been in three waves indicating that some kind of flat correction is unfolding, which ultimately will call for a retest of 125.86 and maybe even a move slightly above, if an expanded flat correction is unfolding.
As a five wave rally can be counted from 75.56, we should be looking for a quite substancial correction and the first target, we normally should be looking for is wave 4 of one lessor degree, which is found at 101.06, which also marks the 50% corrective target of the rally from 75.56 to 125.86.
As long as minor resistance near 124.00 and more importantly resistance at 124.45 protects the upside, I will be looking for a continuation lower to 121.56 and maybe even slightly lower 120.32, before a move back to near 125.86 is expected.
Remember, corrections can look like a sure thing one day and somting completely different the next, especially when looking at the shorter time-frame.