- USD / JPY bulls are back as the US dollar breaks through critical resistance at 92.20, DXY.
- 110.00 is seen as a target for the bulls on a breakout of daily resistance.
What follows is a top-down analysis of the USD / JPY which results in a bullish bias in the 110 area as long as the greenback continues to break out of the doldrums.
The price corrected to test the bear’s daily resistance commitments in the 109.60 which holds so far.
Failure here could lead to a downward extension to test the weekly support structure in the 108.50
DXY correction in progress?
The US dollar, however, is testing the old resistance of 92.30 today with a high of 92.308 so far.
A positive continuation on a bullish close could be in play for the foreseeable future as price moves on the 38.2% Fibonacci retracement and looks at the neckline of the M formation.
This is located near the 61.8% Fibo and 92.50.
Bullish outlook for USD / JPY
From a weekly perspective, the price is testing the support.
If this were to hold, there would be a focus on the M formation’s neck line near the 110.00 figure as pictured above.
In choppy currency conditions, what could happen, in the meantime, is a bullish inverted head and shoulders pattern on the daily chart as the dollar corrects higher.