USDJPY has broken above 105.50 and is heading towards our 106 target. The recent pull back reached our buy area of 104.65-104.30 as we explained in previous posts. Price has bounced strongly off the 50% Fibonacci retracement and is now making higher highs.
USDJPY has respected the blue upward sloping trend line support and is now trading at 105.77. We are bullish USDJPY since the end of January when price was breaking out of the multi-week bearish channel. Recent lows at 104.40 are key support and trend change level. We remain bullish looking for a move above 106 as long as we trade above 104.40.
