Technical outlook:
USD/JPY had dropped to 106.00 levels before pulling back. The currency pair is seen to be trading around 107.59 levels around this point in writing and is expected to push towards 108.30/40 in the short term. The primary boundary which is being worked upon is between 109.85 and 106.00 respectively. The rally since 106.00 could be defined as a counter trend, which is expected to reach 108.30/40 levels. Please note that fibonacci 0.618 retracement of earlier drop is also passing around 108.30/40, hence a bearish bounce is expected. Interim resistance is seen around 109.85, while support is seen towards 106.00 respectively.
Trading plan:
Sell @ 108.30/40, stop @ 109.85, target @ open.
Good luck!
