Technical outlook:
USD/JPY might be preparing to carve a meaningful bottom around the 105.00/20 levels. The single currency is seen to be trading around 105.94 at the moment of writing and it is expected to rise higher towards 107.50, 108.20, and beyond. The currency sharply reversed last Friday from above 107.00 towards 105.20 before finding support again. The Immediate price support is seen at 104.20, while resistance is around the 107.50, 108.20 levels. A break above the 109.85 resistance will confirm that bulls are back in control and they are determined to push the price above 110.00 in the next leg. Also note that USD/JPY earlier bounced off the Fibonacci 0.618 retracement of the entire rally between the 101.18 and 111.75 levels.
Trading plan:
Remain long, stop @ 104.00, target is @ 110.00 and higher.
Good luck!
