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USD/JPY Daily: Momentum is clearly waning, but has not yet turned down. However, the count in the chart you see below shows that Wave C, which ended at 114.82 high, is exactly 1.618 the length of Wave A (a common extension in Elliott Wave Theory for a C corrective wave). I still believe the yen will be a very good candidate to short on any stock market correction (and despite the investment world always believing a weak currency is the best outcome, citizens and importers inside Japan aren’t happen losing all this purchasing power). Plus, the mechanism in which the Bank of Japan is trying to manage its yield curve is wrought with unintended consequences.