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Fan Yang

USD/JPY - Short-term Bullish Target

The USD/JPY has been bearish but found support around 111 earlier this month.

USD/JPY 1H Chart 2/25

(click to enlarge)

This week, price came down almost to 111 again, and buyers again supported the pair. It is now pushing back above 112.50, but let's not get too excited. There will definitely be some traders/analysts looking at a double bottom possibility, and that will fuel at least fuel a short-term bullish scenario. But I would want to see if price can clear the 113.20-113.50 area first before considering a short-term bullish, medium-term neutral scenario for USD/JPY. 

Resistance Factors:

1) 113: psychological handle and a falling trendline
2) 113.20: the 200-hour SMA and a support/resistance area. 
3) 113.50: part of the support/resistance area.

A break above these factors first opens up the 114.80-115 area. Then 116 a previous support pivot could turn into resistance. The bullish outlook could extend towards 118, but beyond that probably requires a pretty clear sense that risk-on is back. 

USD/JPY Daily Chart 2/25

(click to enlarge)

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