USD/JPY bouncing up towards profit target, remain bullish

The price has bounced perfectly off our buying area and has started to shoot up nicely towards our profit target. We can also see that is has made a bullish exit from a previous descending resistance-turned-support line. We remain bullish looking to buy above 110.32 support (Fibonacci retracement, pullback support) for a further push up towards 111.59 resistance (Fibonacci retracement, horizontal overlap resistance).

RSI (34) sees bullish divergence and also sees a bullish exit of a descending resistance-turned-support line.

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

Buy above 110.32. Stop loss is at 109.74. Take profit is at 111.59.


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