The Japanese yen retraced 50% of its last leg, completed a weekly consolidation, and started moving up again. Since it has not entered a larger correction, possibility is that wave 5 is subdivided into an extension. So holding 101.35 as support, USD/JPY is now heading to 110, in wave 3 of 5. If a weekly close above the 105.44 level, we can extend out targets towards 114 and higher levels.
Weekly basis-
In the H4 chart, the pair is moving in one side. In Asia's trading session, the pair is trading at 103.66 and it is near the previous high level at 103.73. The RSI is in overbought zone. We expect the pair to take a back seat before further up move. On the downside, the support levels exist at 103, 102.75, 102.5, and 101.75. On the up side, if the pair crosses the resistance level of 103.73, the pair will fly up to 105.30 with intermediate resistance levels at 104.6 and 105. Buy on dip is a good strategy for this pair. The levels of 102.78 and 102.3 (50SMA) in the daily chart are good support in the coming days.
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