USDJPY bulls had managed to take out past resistance at 105.65 recently as displayed on the 4H chart here. In our Weekly Newsletter this Monday, the probability of a pullback was amply discussed and bears seem to be on track towards 104.00/20 zone.
USDJPY is ideally set to resume its rally from around the above mentioned zone, keeping the bullish structure intact and push towards next resistance above 107.50 and higher. The entire structure is expected to remain bullish until prices stay above 102.59, going forward.
Alternately, if USDJPY looks to unfold as an inverted Head and Shoulder pattern, the corrective drop might extend through 103.20/30 zone to carve a potential right shoulder. Thereafter, the rally could resume towards 107.50 and further.
If the alternate count is unfolding, USDJPY may temporarily break the trend line support as shown here, but that doesn’t indicate a trend reversal. Bulls shall remain in control for the next several weeks to come and bottom line is 102.59 levels.
Looking at the wave counts, USDJPY might be progressing in Wave 3 towards 107.50 and higher. For the above to hold, 103.40 should stay intact. Alternately, an expanded flat Wave 2 could be in the making, which might terminate around 103.30 levels. Wave 3 could then resume further.
Either way, USDJPY bulls are looking poised to remain in control and push above 112.00 levels, to complete Wave (D) of a larger degree triangle. Any further dips from here should be considered as an opportunity to initiate further long positions.
Finacademy Technical Team
Silver has raised through $27.55 levels this morning, alongside most risk assets. The metal has approached a strong resistance zone now and bears might be inclined to take control back soon. Also note that it has almost reached the fibonacci 0.618 retracement of the entire drop between $30.13 and $23.80 levels respectively.
USDJPY bulls are now looking poised to push through 112.00/50 mark, after have carved yet another higher low around 107.50. Please note it bounced off the trend line support since January 2021 lows as well. Looking higher from here for next few weeks.
Gold had raised through $1799 yesterday before reversing sharply towards $1770 before finding support again. The yellow metal is pulling back at the moment and seems to have carved a meaningful top already yesterday. If correct, $1786 might offer strong support.