Technical outlook:
USDJPY bears managed to hit lows at 102.87 last week before finding support again. The currency pair has since then rallied through 103.88/89 highs before pulling back today; it is expected to print one more high above 103.89 before producing a meaningful retracement. High probability remains for a meaningful bottom in place at 102.87 level.
USDJPY faces potential support at 102.87 now, while resistance is seen towards 105.67 marked on the daily chart here. A push towards 105.67 will confirm that a meaningful bottom is in place at 102.87 and USDJPY would print higher highs and higher lows thereafter. Also note that bullish bounce has come around fibonacci 0.88 retracement levels, which is constructive for bulls.
Also note that strong support prevails around 101.18 levels, the March 2020 lows. Looking at the daily chart, the wave structure might be indicating a strong rally towards 110.00 and further in the next several weeks.
Trading plan:
Remain long, stop @ 101.00, target @ 110.00
Good luck!
