USD/JPY Bulls Remain Well-Positioned

The FX Trader’s view - The recovery scenario in USD/JPY recently took a knock, but bulls seem to have quickly regained their poise, and can still target higher levels, particularly on a break through the 95.00 resistance area.

• WEEKLY CHART: We still view the break of the bear channel top as a bull signal, but a better push through the 23.6% area would be a useful confirmation here.
• DAILY CHART: After finding resistance from the 61.8% recovery level the recent sharp shake-out last week found clear support from the key 88.00 area. Following the impressive rebound the bullish outlook must remain in place for now - but at this stage a close above the 95.10 61.8% retracement would provide a useful boost (this would clear the 23.6% level on the Weekly chart). S/term attention would then turn to the 76.4% level and slightly higher (and revised) Fibo projection at 98.30.

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