Technical outlook and chart setups:
The USDJPY pair seems to have completed its deep corrective drop between 126.00 and 99.30 levels as depicted on the weekly chart here (a-b-c). The wave structure reveals that the pair has rallied from 75.00 to 125.00 levels in 5 waves (impulse) earlier. It has now produced a 3-wave corrective decline to 99.30 levels, which is the Fibonacci 50% support of the entire rally. The next possible move from here should be downwards. The pair is already seen to be trading at 102.30 levels at the moment. It is hence recommended to remain long from here on with risk below 99.00 levels. Immediate support is seen at 99.30 levels, while resistance is at 107.00 levels. Bulls are expected to take control back from here.
Trading recommendations:
Remain long now, stop at 99.00, target is open.
Good luck!
