USDJPY bulls had managed to rally towards 110.75/80 levels yesterday before finding strong resistance. Bears are expected to remain in control over the short term, dragging prices towards 109.00 mark at least. Intraday resistance could be seen around 110.50/60 zone.
USDJPY has been unfolding within a larger degree corrective (A)-(B)-(C) rally since 101.18 lows registered in March 2020 as discussed earlier. Within the above wave structure, Waves (A) and (B) are already in place around 111.75 and 102.59 levels respectively.
Since then, a larger degree Wave (C) seems to be unfolding, and minimum expectations are for a push through 112.50 levels. Once the above structure is complete, USDJPY bears might be back in control to drag prices lower retracing the entire rally from 102.59 lows.
Looking into the sub waves within larger degree Wave (C), USDJPY might have already completed Waves (1), (2), (3) and potential (4) around 104.40, 103.30, 111.65 and 108.75 levels respectively. If the above is correct, prices would stay above 108.75 mark and push through 112.50 going forward.
Alternately, Wave (4) might be still unfolding and potential remains for a drop towards 107.50 levels before resuming a Wave (5) rally towards 112.50 levels and higher.
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.