Technical outlook:
USDJPY rallied from 103.70 lows yesterday, and managed to hit intraday highs around 104.50/55 levels in line with expectations. The currency pair produced a bullish Morning Start candlestick pattern on the daily chart, indicating a potential trend reversal ahead. Immediate resistance is now seen at around 106.00 followed by 107.00; while support comes in around 103.18, followed by 103.00 levels respectively. Intraday support is seen towards 104.10/20 levels and it might be used as another opportunity to initiate fresh long positions. A push above 106.00 will confirm that bulls are back in control and that USDJPY has already carved a meaningful low around 103.18. Furthermore, the currency pair will also enter into the buy zone once prices break above 106.00 that is encouraging for further highs.
Trading plan:
Remain long, stop @ 101.00, target 109.00 and higher.
Good luck!
