USDJPY has gained significantly today from 1035, now breaking above 114 handle. Will a break above 114 top lead price to the 115 handle?
USDJPY has enjoyed a sustained bullish run since September after a particularly strong Dollar. As the market eye the employment data coming from the U.S on Friday, what’s the next bullish target to watch out for? If the employment data come better than expected. we should see price in the region of 115-115.50 price levels.
In the last update, we looked at the the short and long term wave analysis with important price support and resistance levels. The chart below was used in the last update to illustrate the wave analysis from the hourly chart.
From the long term degree, price is making a wave B of 2 rally. Wave B which is looking like a zigzag pattern is completing the last leg – expected to be a motive wave (impulse wave most probably). If this forecast is correct, USDJPY will advance far further.
Price dropped nearly 50 Pips yesterday to 113.5 but has been bullish so far today with current price above 114. It’s expected that price would go further upside. The chart below shows the price behavior since last September.
USDJPY- Technical Overview and Important Levels
Since September, after the end of wave (ii), price has advanced in a simple gradual manner. Within the rallies, there are simple shallow bounces (illustrated with red oval shape in the chart above). At the end of each bounce, price rallied further. Yesterday’s dip (which was expected according to the Monday update) was the latest bounce with top at 114. Price is now rallying again towards the 114 to show the strength of he bulls. Once 114 is taken out completely, price will very much likely hit 115-115.50 zone. The Friday U.S employment data is the next high impact economic event barring any trade war sudden headlines.