By analyzing the daily techncial chart we can see that pair is making successively higher highs and higher lows and getting upside by taking the support of an uptrend line. The short term trend is bullish and in an uptrend market always buy on dips will be profitable strategy.
USD is getting weaker due to which we are witnessing rally in all the pairs where USD is base currency and we may see further move up to 112.50 level in near term which indicates that USD will weak further. now it’s bull run and traders are advised to go long in the pair with having the strict stop loss of 110.
As we mentioned in our report that buy the pair around 110 and after that pair marked high of 112.13 level which is itself a strong move, we are hoping that our readers must have made profit from this move. 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. 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 up 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. The 110.00 is immediate support level followed by 108.50 level whereas 112.50 level is immediate resistance level followed by 115.00.