The price has bounced perfectly off our buying area and has started to shoot up nicely towards our profit target. We can also see that is has made a bullish exit from a previous descending resistance-turned-support line. We remain bullish looking to buy above 110.32 support (Fibonacci retracement, pullback support) for a further push up towards 111.59 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (34) sees bullish divergence and also sees a bullish exit of a descending resistance-turned-support line.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EUR/JPY, AUD/JPY, and USD/JPY.
Buy above 110.32. Stop loss is at 109.74. Take profit is at 111.59.
