Morning Report

The USD/JPY pair continued hovering around 38.2% Fibonacci retracement of the entire bullish rally from 75.55 to the significant peak of 84.15 as seen on the provided four-hour graph. We still classify the current price behaviors as internal corrections for the bigger third wave of our suggested Elliott count discussed several times before. Meanwhile, RSI 14 is gradually approaching the oversold territories and that may bring an upside move sooner. Only a break back below 80.00-79.80 zones will negate and give us a reason for concern.

The trading range for today is among key support at 79.80 and key resistance now at 82.10.

The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.

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Weekly Report

RecommendationBased on the charts and explanations above our opinion is, buying the pair above 81.25 targeting 83.20 and stop loss below 79.85 might be appropriate.