USDJPY had dropped through 109.20 levels yesterday before bouncing back and rallying through 109.66 highs intraday. Bulls seems to be back in control and looking poised to push higher towards 111.30 and 112.50 at least.
USDJPY has been in an uptrend since 102.59 lows registered on January 06, 2021, which has already been presented early. The currency might be unfolding a lower degree wave iii within wave (iii) of Wave 5 of (3) as labelled on the chart view.
The above proposed bullish structure is expected to hold until prices stay above 107.47 lows, which is right at the 05 month old trend line support as seen here. USDJPY has tested the above trend line support at least 04 times in the past few weeks and seem to be holding it.
The recent lower degree wave I and ii seem to be in place around 110.33 and 109.20 levels respectively. If the above is correct, we can expect wave iii rally towards 111.00 and higher in the near term. Expect 109.20 to hold going forward.
Most traders might be preparing to hold and initiate fresh long positions around current levels (109.55) with a risk around 107.50. Potential targets remain above 112.50 mark over the next few weeks.
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.