USD/JPY bouncing up nicely from support, remain bullish for a further rise

THe price has started to bounce really nicely off our buying entry. 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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