Technical outlook:
USDJPY might be preparing to rally towards 109.85 resistance in the next few weeks. The currency pair is seen to be trading around 106.05 at this point in writing and is expected to resume its rally soon. The currency pair had earlier rallied between 101.18 and 111.75 levels, which is the bullish boundary being worked upon. Furthermore, prices had dropped just below the Fibonacci 0.618 retracement around 104.20 levels, before bouncing back. USDJPY had produced an engulfing bullish candlestick pattern indicating a potential reversal. Prices are now carving a higher low around 105.80/106.00 levels, before resuming higher again. Immediate resistance is seen towards 107.50, while support is near 104.00.
Trading plan:
Remain long, stop @ 104.00, target above 109.85
Good luck!
