Technical outlook:
USDJPY might have resumed its rally from 103.68 lows the day before yesterday. The currency pair is now trading above 104.50 levels and is expected to stay above 103.65, pushing higher towards 107.00 levels. It faces immediate resistance towards 106.00 while support is seen at 103.65 levels respectively. A push above the sloping resistance trend line would be encouraging to bulls and also confirm that a meaningful low is in place at 103.65 respectively. The overall structure presented on the daily chart here looks constructive for bulls until prices stay above 101.18 lows. The major boundary which is being worked upon is between 101.18 and 111.75 respectively. It has been retraced through the fibonacci 0.786 levels around 103.18 earlier. Bulls are expected to remain in control over the next several weeks.
Trading plan:
Remain long, stop @ 101.18, target @ 107.00, 109.00 and higher.
Good luck!
