USDJPY might be preparing to resume higher towards 107.00 in the near term. The currency remains in control of bulls as long as prices stay above 104.00, going forward. Bulls are looking poised to not only push through 107.00 but even further towards 109.85 mark, in the next few weeks.
USDJPY wave structure remains constructive for bulls since 101.18 lows in March 2020. The currency had initially staged an impressive rally towards 111.75 levels. Thereafter, bears took control and managed to pullback lower towards 104.00 levels. The drop was seen to be corrective.
Also note that the above drop between 111.75 and 104.00 had found support from just below the fibonacci 0.618 retracement of the earlier rally, which is seen towards 105.20 mark. Bulls managed to push towards 106.00 mark, before retracing lower through 105.00 recently.
Further note that USDJPY seems to have found support around fibonacci 0.618 retracement of recent rally between 104.00 and 106.00 respectively. If the above holds well, prices should stay above 105.00 and continue pushing higher towards 107.00 and above in the near term.
Immediate resistance is seen towards 107.00, while interim support comes around 104.00 levels respectively. A push above 107.00 would confirm that bulls are back in control and that a meaningful low has been registered around 104.00 levels respectively.
At least for the next several weeks, USDJPY might remain in control of bulls and continue pushing towards 107.00, 108.30, 109.85 and higher respectively.
Long against 104.00, targeting 111.75