The price has bounced perfectly and reached our profit target for the 5th time in a row. We remain bullish looking to buy on the break of our 87.80 resistance (Fibonacci retracement, horizontal overlap resistance). Once the price has broken this level with strength, we look to play the rise to 88.25 resistance (Fibonacci retracement, Fibonacci extension, horizontal swing high resistance).
RSI (34) has broken out of a descending resistance-turned-support line signaling that a change in momentum is fast approaching.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EUR/JPY, AUD/JPY, and USD/JPY.
Buy above 87.80. Stop loss is at 87.48. Take profit is at 88.25.
