Technical outlook:
USDJPY seems to be heading above 111.80 levels to complete the entire wave structure that had begun from 101.18 lows in March 2020. The currency pair is already underway into its final leg rally since 102.59 lows in January 2021. Furthermore, it has already print 111.65 high on July 02, 2021, before pulling back lower.
USDJPY is seen to be trading around 110.50 levels at this point in writing and is expected to face interim resistance around 111.00 levels soon. The currency might remain under pressure thereafter and turn lower towards 108.00 levels in the next few trading sessions. Immediate resistance remains at 111.65 mark, while support comes in around 107.47 levels respectively.
USDJPY might remain in control of bears in the short term, until 111.65 stays intact. A drop below 109.50 might encourage further bearish move towards 108.00, which is also fibonacci 0.382 retracement of the entire rally between 102.59 and 111.65 levels respectively. Aggressive traders might remain short.
Trading plan:
Aggressive: Remain short, stop @ 111.65, target @ 108.00/20
Conservative: Remain flat for now, Buy @ 108.00, stop below @ 107.40, target @ 112.50.
Good luck!
