USDJPY is trading around 109.30. As explained in our last analysis on USDJPY, price had potential for a move towards 109.20 until the end of the week and bulls remain in control of the bounce reaching our target.
Red line - support trend line
Green lines - Fibonacci retracement of the upward move
Blue lines- Fibonacci retracement of the last downward move
USDJPY is approaching resistance area at 109.60 where we find the 61.8% Fibonacci retracement of the last downward move. Bulls need to be cautious in this Fibonacci retracement area as the chances of a reversal are high at this level. As long as price is trading above the red upward sloping support trend line bulls remain in control of the trend. If the red support trend line is broken we should expect a move towards the 61.8% Fibonacci retracement (green lines) towards 105.75-106. If price breaks below 108.20 we will have a bearish signal.
