USDJPY has managed to find an initial cap on challenge of the May highs at 111.36/45. We would allow for a correction lower towards 109.80/76 at first where fresh buying is expected to show.
Bigger picture though, the core trend remains bullish, with a break above 111.45 needed to open the door for a move towards 50% retracement of the 2015/2016 decline at 112.44, ahead of 113.82. Below 109.76 can trigger a deeper correction for 109.22 at first, with 108.54 expected to hold.
Would you like to get more such informations directly on your email? Try out FxWatcher service for 5 days for free!
Our strategy: Long at 110.45, stop below 109.76 for 112.40.
