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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 IISMAVG (50) on Close 108.94 MSMAVG (100) on Close 114.97 I SMAVG (200) on Close 108,36 130 0.0%( 125,86) F125 F120 +115 R: 111 - 111.80 F110 r105 " 50.0% (100,60)) iy. F100 Major Su pport 61.8%(94.64) 95, 90 rss r80 100.08(75.35)| 7 USDIPY MIRSI 46.2577 0B 70.00 0s 30.00 +100 a 5 Af ks rso mon +60 +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 210 90 70 50 Golden cross 30 10 90 70 4- 50 T T T T T T 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