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.
USDJPY structure remains bullish since printing lows at 102.59 on January 06, 2021. The currency has carved larger degree Waves (1), (2), (3) and now potential Wave (4) around 104.39, 103.33, 111.00 and 107.50 levels respectively.
Also note that Wave (3) was an extension, clearly sub dividing into 5 waves as labelled on the chart. Furthermore, USDJPY has bounced off the fibonacci 0.382 retracement of Wave (3), which is a general guideline for Wave (4) termination.
If the above larger degree structure holds well, USDJPY would stay above 107.50 and continue to remain in control of bulls. We can expect higher highs and higher lows, going forward. A minimum requirement for the wave structure to complete is a push above 111.75.
Looking at the short term wave structure, USDJPY seems to have completed a lower degree impulse rally between 107.50 and 109.70 levels respectively. If correct, we can expect a drop towards 108.40 levels from here, before the rally resumes.
Traders might be willing to buy more on a drop towards 108.40/50 with a minimum target towards 112.00 target towards 112.00 levels.
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.