Violet lines- Fibonacci retracements
Red lines- Fibonacci extension targets
USDJPY is trading around 133.33. USDJPY has so far retraced 50% of the entire major upward move from 102.59 to 152. Price bounced off the 50% retracement level towards 137.92 and then pulled back towards 129.66 to form another higher low. So far this pattern is promising for bulls.
USDJPY has started forming higher highs and higher lows in lower time frames as well. Resistance is at 133.77 and next at 137.93. Breaking above these two resistance levels will open the way for a move even higher towards 140.50. Support is at 129.66. As long as bulls manage to hold above this level, they will have hopes for a bigger bounce towards 140.50-141. So far price has formed one leg up from 127.24 to 137.92. If our bullish scenario is correct, then we are now at the second upward move and the 100% extension target is at 140.50.
