USDJPY prepares to rally towards 111.00 and 112.50

Written by Finacademy.io

June 3, 2021

Technical Analysis:

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.

Prepared by

Finacademy Technical Team

Related Articles

EURUSD progressing in Wave (3) lower towards 1.1300 levels

EURUSD progressing in Wave (3) lower towards 1.1300 levels

EURUSD has finally reversed lower from 1.2218 highs last week, after having drifted sideways for a while. The drop was much anticipated as bears have managed to take out over 300 pips since last Wednesday. They remain poised to target below 1.1700 in the near term.

US Dollar Index preparing to push higher towards 95.00/96.00

US Dollar Index preparing to push higher towards 95.00/96.00

US Dollar Index has raised through 92.00 levels as of now and bulls are looking poised to extend further through 95.00, 96.00 levels in the next few weeks. It is quite possible that they continue higher from here itself or after a pullback, but prices stay above 89.60 levels.

USDJPY prepares to push through 111.20 levels

USDJPY prepares to push through 111.20 levels

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.

en_US