By analyzing the daily technical chart we can see that earlier pair was heading at south side and was making successively lower los n lower highs but after arriving at 104.65 level we have seen a pull back on same day.But after a pull back we have seen a deep consolidation in the pair which indicates that both bulls and bears were fighting to take the pair at their own side, eventually we have seen that bulls won the war against the bears.
As we mentioned in our report that breakout on either side will give us new buy/sell signal and we watched that bulls took the charge and heading towards north side.
From techical prospective we can see that a rounding bottom pattern is in process of formation which indicates that 115 level is unfinished target for bulls.From last two consecutive days we have seen bullish sentiments and totally buying is going on with every pair of JPY. USD/JPY looks set to continue churning as roiled markets collect themselves and take stock, though broadly bullish market sentiments is unlikely to see the pair make a full recovery unless the Pacific-Asia market session sees a full revival of risk appetite.
Presently bulls took the pair at upside and above the moving average which is itself a bullish signal. Well the way pair is reacting it seems like pair will move down further towards 115 level in near term. Odds are in favor of bulls. Intraday bias remains bullish on the pair.A daily closing above 112.50 level will open the way towards north side i.e. 115 level in near term. A bullish crossover on the MACD indicator is generating bullish signal and RSI is also favoring the bulls for the time being.
Three white soldier pattern is in process of formation on the chart or we can say that a bullish marabuzo candlestick followed by the another bullish marabuzo have created the chances of further weakness. The 107.00 is immediate support level followed by 109.50 level whereas 112.50 level is immediate resistance level followed by 113.50.