On daily chart of USDJPY price tested support around 110.00. This area coincided with 50% of FIBO abolition. You may notice an increased reaction of bulls in a form of bullish engulfing candle (confirmed by volume). An additional factor predicting growth is closing of the weekend’s bearish gap.

USDJPY Daily

It is worth to look at a lower time interval chart. On a H4 chart you can see formation of a reversed head and shoulders. There is a noticeable increase in bullish activity. Price is reaching levels above the neck line. The price is currently testing levels below the previously mentioned area. Breaking up will likely lead to greater buyer pressure. The minimum range of formation would be around 112.50.

USDJPY H4

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