Technical outlook:
USDJPY dropped through 103.83 levels yesterday before finding support and pulling back. The currency pair is seen to be trading around 104.31 levels at this point in writing and might be preparing to rally through resistance trend line Immediate resistance is seen towards 106.00, followed by 107.00; while support is intact towards 103.18 levels respectively. The overall structure on daily chart remains constructive for bulls until prices stay above 101.18 levels, going forward. Please also note that USDJPY had found support around 103.18 levels earlier, which is fibonacci 0.786 retracement of the earlier rally between 101.18 and 111.75 levels respectively. Furthermore, the currency had produced a rally towards 106.67 levels before pulling back. It seems that USDJPY has again found support around 103.83 levels yesterday, and might be inclined to push higher from here.
Trading plan:
Remain ling, stop @ 101.18, target @ 107.00, 110.00
Good luck!
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