USDJPY might have carved a potential higher low around 108.56 mark on May 25, 2021 and is now looking to continue higher towards 111.00 at least. Also note that prices remain into the buy zone of the 05 month old trend line support.
Looking at the short term wave structure since 107.47 bounce, USDJPY has managed to terminate lower degree Waves I and ii around 109.69 and 108.56 levels respectively. Please note that Wave ii has unfolded into a running flat, indicating a swift reversal ahead.
USDJPY has been in an uptrend since printing 102.59 lows on January 06, 2021. It has managed to carve larger degree Waves (1) and (2) earlier, and Wave (3) is in progress. Furthermore, wave 3 of (3) was an extension as labelled on the chart here.
USDJPY bulls had managed to terminate Wave 4 around 107.47, right at the trend line support. If the above proposed structure holds well, Wave 5 of (3) is now in progress and might be looking to terminate through 112.50 levels, going forward.
Immediate potential support is seen around 107.47 and USDJPY bulls would stay in control until prices remain higher. Intermediate resistance is seen towards 111.00, the previous swing high and a push through that would accelerate further.
Overall, USDJPY remains bullish until at least 112.50 from here. It would complete a larger degree corrective ((A))-((B))-((C)) rally, which had begun from 101.18 lows since March 2020.
Finacademy Technical Team
EURUSD has finally reversed lower from 1.2218 highs last week, after having drifted sideways for a while. The drop was much anticipated as bears have managed to take out over 300 pips since last Wednesday. They remain poised to target below 1.1700 in the near term.
US Dollar Index has raised through 92.00 levels as of now and bulls are looking poised to extend further through 95.00, 96.00 levels in the next few weeks. It is quite possible that they continue higher from here itself or after a pullback, but prices stay above 89.60 levels.
USDJPY breaks higher towards 110.80 levels yesterday as the technical direction was clear and discussed here. At times market awaits a trigger to push through its determined trend; it was the Fed interest rate yesterday that provided the same.