USDJPY strong long-term support bounce
USDJPY has bounced from long-term support zone 104.500-105.300 as we can see on the weekly chart. We are within a long-term rising wedge with well-defined breakout levels. For the clear upside reversal continuation from here, we need to see a price action break above 108. A break and a follow-through below narrow shaped rising wedge 104.400 is required for the downside reversal and a long-term support line 102 test.
On a daily chart, we can see that the pair is retesting the broken bull flag resistance 106.300. Look for the long trade entry with the stop loss below 106 and a profit target of 108 near-term. If we get a confirmed break above 108 look to add more. Our trading system is indicating a potential of 200-300 points of profit. Look for the long trade entries invalidation to come only on a clear daily close below 105.500.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
