Technical outlook:
USDJPY has retraced lower in the last 4 weeks after printing highs around 111.00 levels. The currency pair might have carved a higher low around 107.50 levels over the last week and it could be ready to resume higher towards 112.00 mark over the next few weeks. Also note that it has found support around fibonacci 0.382 retracement of the entire rally between 102.59 and 111.00 levels respectively.
USDJPY has rallied higher and is seen to be trading around 108.28 levels at this point in writing, expected to push through 108.55 and 109.45 in the immediate short term. Immediate resistance is seen at 111.00, followed by 111.79 mark; while support comes in around 107.50 levels respectively. There seems at least one more rally left towards 112.00 before bears are back in control.
USDJPY had earlier dropped through 101.18 lows in March 2020. It was followed by a sharp rally towards 111.75 as shown here. The entire boundary between 101.18 and 111.75 was retraced through 102.59 levels in January 2021. Now bulls are looking poised to extend above 111.75 and complete the wave structure.
Trading plan:
Remain ling, stop @ 105.00, target @ 112.00 and higher.
Good luck!
