The pair USD/JPY has been in the uptrend for a descend amount of time. Recently it has made a large correction on the Daily time frame and being ready for a even larger bullish rally to at-least 121.55. Both fundamental and technical perspective is supporting my view. Nenad Kerkez, chief analyst of “Admiral Markets” has recently told the FxStreet that he is also expecting a bullish move from this pair.
If we look at the weekly chart of USD/JPY, we can see that the recent bullish trend has started from above a monthly trendline and equidistant channel support confluence. Then it pushed heavily to the upside, broke a very strong support (Which was a resistance while breaking :13: ) and re-tested it. While re-testing, it has also completed 61.8% Fibonacci retracement of it’s first swing.
If we then look at the daily chart, we can see that the pair has completed a large correction by making a downward equidistant channel. Then it broke the channel to the upside and re-tested it. So, now is the moment to look for buying opportunities.
Caution: My another analysis is saying that the pair may make another correction to 111.74 handle before strong bullish rally.
Always remember, money is yours, decision is yours and your capital is at risk while trading. :mad: