reverse. Fading high 106’s could be a short-term profit-taking view, or area to enter countertrend short. A final thrust toward July highs of 107.49 is possible and an alternative profit-taking level. A pullback to 105.50 or 104.30 could certainly be bought for the broader uptrend targets of 108.47, and possibly 111.40, from the weekly chart pictured here. Exhibit 1: USD/JPY weekly chart MUSD-JPY X-RATE - Last Price MISMAVG (50) on Close 108.94 BM SMAVG (100) on Close 114.97 INSMAVG (200) on Close 108.36 130 0.0%( 125.86. Pa 125 9 & De ey 7 i 120 | a a Za 116.80, Aa —_ i eae = NAL =— wa a l 105 A i——— P Nie nrmthZoee TS 4 | _50.0%(100.60) - rT lea Major Support 7 Be if i (a y i — ie" ; a i : 61.84(94.64)L95 ; £ 85 . ee 4 i a al } = == td 80 ar 9 100,0%(75.35) 75 USDIPY MIRSI 46.2577 ©10B 70.00 (105 30,00 100 —~\ a aA 2a i Ve , 80 -_" = Soc = =f res \ oS PN ~ - i va - el (oS a : : 60 / \ iS (Nn Vo Aa ON Na oad \ i ——~ | Ay sf POS Vy” mY vi) —— ow tt enn AY ens 40 2012 2013 2014 2015 2016 2017 Source: BofA Merrill Lynch Global Research, Bloomberg Long-term picture: 50m average crossing 200m average Chart 5: USD/JPY monthly chart with 50m average and 200m average 190 . 150 Golden cross 130 OO aaa Va, ao, 2 ae lal 50 Oct-91 Oct-96 Oct-01 Oct-06 Oct-11 Oct-16 ——USDJPY ——50m mva ——200m mva Source: BofA Merrill Lynch Global Research, Bloomberg Bankof America Merrill Lynch Japan Macro Watch | 14 November 2016 3 HOUSE_OVERSIGHT_014426