USDJPY is trading around 140.35 and is bouncing off cloud support in the Daily chart. In previous posts we discussed the vulnerability of price towards the cloud as a counter trend pull back. Price has reached our pull back target and is now bouncing. Price is now challenging the tenkan-sen (red line indicator) which is the first resistance level at 140.15. The kijun-sen (yellow line indicator) provides resistance at 141.17. The Chikou span (black line indicator) is trying to break above the candlestick pattern but for now it is still bearish (below the candlestick pattern). Bouncing off cloud support is a positive sign for bulls. We might see another pull back towards cloud support and it is important for the bullish trend to be maintained, for price to remain above the cloud.
