USDJPY bulls managed to push prices towards 110.00/10 handle before finding some resistance. The currency seem to be trading within a very tight range looking for a breakout. Potential remains for a bullish breakout if it manages to clear above 110. 20 mark.
USDJPY has been carving a larger degree (A)-(B)-(C) rally since 101.18 lows as discussed earlier. The currency has already terminated Wave (A) around 111.75 and Wave (B) at 102.59 mark respectively. Since then, Wave (C) is unfolding as an impulse, and is expected to reach at least 112.50.
Looking into the sub waves within Wave (C), USDJPY has either terminated a larger degree Wave (3) around 111.60 or an impulse. In case of a Wave (3) termination complete, the currency is working on a Wave (4) potential triangle scenario.
If Wave (4) completed as a triangle, prices will stay above 109.00 handle and continue pushing higher from current levels. A breakout above 110.20 will confirm that bulls are back in control and that prices are now headed towards 112.50 and higher.
Alternately, USDJPY could drop through 107.50 levels before turning higher again. Either ways, traders can prepare to initiate fresh long positions going forward.
Finacademy Technical Team
Gold prices dropped through $1773 lows on Thursday before finding support again. The drop from $1793 was in-line with price action of a gartley.
The US dollar index might have carved a lower high around 96.50 mark on Tuesday. The index dropped through 95.80 levels on Wednesday before finding some support.
USDJPY is soon approaching a formidable resistance zone around the 114.40-50 mark. The currency pair has been carving a corrective rally since 112.50 lows.