USD/JPY approaching major support, remain bullish

We remain bullish looking to buy on dips above 109.80 support (Fibonacci extension, Fibonacci retracement, bullish divergence) for a push up to at least 111.59 resistance (Fibonacci retracement, horizontal overlap resistance).

RSI (34) sees bullish divergence signaling that a bounce is impending. The previous occurrence of such a bullish divergence led to a huge bullish rally.

Correlation analysis: We are seeing JPY weakness across the board with bounces expected on USD/JPY, AUD/JPY and EUR/JPY.

Buy above 109.80. Stop loss is at 108.67. Take profit is at 111.59.

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