Technical outlook:
USDJPY accelerates its rally further today and prints 104.20 highs. A bottom looks to be in place at 102.59 and bulls remain poised to carve a series of higher highs and higher lows, going forward. The single currency pair is seen to be trading around day's high at 104.19 at this point in writing and looks poised to continue higher, going forward.
Immediate near term resistance is seen around 104.50, while support is held strong at 102.59 levels. On the smaller time frames, USDJPY might have completed an initial rally between 102.59 and 104.20 levels respectively. Also an interim resistance was taken out at 103.85/90 levels; hence a corrective pullback could soon materialize towards 103.25 in the next few trading sessions.
The larger wave structure remains constructive for bulls to continue higher from here and a break above 105.65 resistance would confirm a potential bullish reversal as well. Please note that USDJPY potential remains until 110.00 and higher levels in the coming weeks until 101.18 levels stay intact.
Trading plan:
Remain long, stop @ 101.18, target @ 107.00 and 110.00.
Good luck!
