This morning, the USD/JPY pair is very bullish from the levels of 103.79 and 104.14. So, the USD/JPY pair gained strong upside momentum and is trying to settle above the support at 103.79.
The USD/JPY pair managed to settle above the support at 103.79 and is testing the next resistance level at 104.73. This resistance level has already been tested three times since last week, and the USD/JPY pair faced strong resistance on each attempt to settle above 105.69 (the double top).
On the one-hour chart, the USD/JPY pair continues moving in a bullish trend from the support levels of 103.79 and 104.14. Currently, the price is in a bullish channel.
This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 104.14, which coincides with a golden ratio (38.% of Fibonacci).
Consequently, the first support is set at the level of 104.14. Hence, the market is likely to show signs of a bullish trend around the spot of 103.79/104.14.
A strong rebound and breach of 104.14 minor support suggests that pull back from 104.73 has completed. Intraday bias is back on the upside for 105.69 resistance.
In other words, buy orders are recommended above the major ratio (103.79 - 38.% of Fibonacci) with the first target at the level of 104.73.
Furthermore, if the trend is able to breakout through the first resistance level of 104.73. We should see the pair climbing towards the double top (105.69) to test it.
Amid the previous events, the pair is still in a downtrend, because the USD/JPY pair is trading in a bullish trend from the new support line of 103.79 towards the first resistance level at 105.69 in order to test it.
On the downside, below 103.79 major support will bring retest of 103.19 low. Overall, the USD/JPY pair is staying inside falling channel, and below 30 of RSI. Down trend from 105.69 is expected to continue as long as 103.79 support holds.
It would also be wise to consider where to place a stop loss; this should be set below the second support of 103.19.
