USDJPY had dropped through 104.00 levels early this week before reversing. The currency is approaching 105.50 levels for now and might have carved a meaningful bottom around 104.00 levels. Bulls are expected to remain in control from here on.
USDJPY structure remains constructive for bulls despite the low at 104.00 levels. The drop from 111.75 finally looks complete with the shallow lows print around 104.00 mark. A standard flat fits into the corrective wave since the sub waves are 3-3-5.
USDJPY had earlier rallied from 101.18 lows through 111.75 highs carving Wave (1) or (A). The subsequent drop was corrective A-B-C, towards 104.00. This could be marked as Wave (2) or (B) on the chart here. Ideally Wave 3 or (C) should be underway higher.
Also note that Wave (2) had dropped through fibonacci 0.618 retracement of Wave (1) around 105.20 mark. Probability for a bullish reversal from here stands high and bulls might be poised to push through 111.75 levels going forward.
Immediate resistance is seen towards 107.50, while support is around 104.00 levels respectively. A break through 107.50 would certainly confirm that bulls are back into control and are here to stay for long. Upside potential remains through 109.85 in the near term.
USDJPY remains a good candidate to be bought on dips from here. Bulls are expected to remain in control as long as prices stay above 104.00 interim support.
Long against 103.80, targeting 111.75