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.
USDJPY bulls are looking determined to push through 111.20 levels in the immediate short term, before producing any major pullbacks. Potential remains to push higher towards 112.50 levels in the next few weeks.
Looking at the wave structure USDJPY has been producing a larger degree Wave (C) since 102.59 lows registered on January 06, 2021. Ideally the C wave would unfold into an impulse or a diagonal. In this case it looks like an impulse unfolding.
The rally since 102.59 seems to be progressing in larger degree Wave (3) within the prosed 5 waves rally. Please also note that 3rd of (3) wave was extended while Wave 4 terminated around 107.47 levels respectively.
Since then, USDJPY bulls have been unfolding Wave 5 of (3) higher towards 112.50 levels. Furthermore, lower degree Wave (iii) seems to be progressing towards 111.20 for now. If the above structure unfolds accordingly, prices would stay above 107.47 going further.
Finacademy Technical Team
EURUSD still remains vulnerable for a drop towards 1.1720 mark, before finding short term support. The currency is trading around 1.1780 levels for now as bears remain poised to print one more low below 1.1751 in the near term.
SPX500 has raised through 4383 highs today, up almost 150 points from the lows around 4234 print early this week. The indice might be testing its previous swing highs around 4394.6 levels, before turning lower again. The structure remains bearish until prices stay below 4394.6.
USDJPY bounced off sharply after printing lows around 109.00 levels early this week. We were expecting a potential drop until 108.50 mark, which is fibonacci 0.382 retracement of larger degree Wave (3) between 103.30 and 111.75 levels respectively.