June 3, 2021
USDJPY seems to be progressing within Wave 5 of (3) since 107.47 lows print on April 23, 2021. Prices had bounced off the trend line support as seen on the 4H chart presented here. Furthermore, lower degree waves (i) and (ii) also seem to be in place.
Wave (i) was an impulse, which terminated around 109.50; while wave (ii) unfolded as a running flat terminating around 108.56 levels respectively. USDJPY is unfolding wave (iii) at the moment, which could push through 112.00 levels in the near term.
Intraday/short term support is seen at 109.20, followed by 108.50 and lower; while resistance stands at 111.00 levels respectively. Bulls are looking poised to take out 111.00 mark in the next few trading sessions. Ideally USDJPY might stay above 107.47 lows, going forward.
USDJPY is carving a corrective rally (A)-(B)-(C) at a larger degree since 101.18 lows in March 2020. It has terminated Waves (A) and (B) around 111.75 and 102.59 levels respectively. Since then bulls are carving Wave (C) higher towards 112.50 levels at least.
As a general guideline, Wave (C) seems to be unfolding into 5 waves, making an impulse. USDJPY might be carving Wave (3) at the moment, pushing towards 112.50 levels. We might witness further bullish moves as Waves (4) and (5) unfold.
Most traders might be holding long positions and also looking to add fresh longs around the current levels (109.70). Bulls are looking poised to remain in control from here on.
Finacademy Technical Team
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