USDJPY reached our first pull back target

USDJPY has reached 107 as expected when prices were getting a reversal at 108. Price has now back tested the break out above important short-term resistance trend lines and it can now continue higher. Price has also reached important Fibonacci support.

Green line - resistance trend line (broken)

Black lines - long-term triangle pattern broken downwards

USDJPY has reached 107 and is bouncing. The 107 level was also the 38% Fibonacci retracement of the recent rise to 107.47 from 104.44. If support at 107 fails to hold we should expect price to move towards 106 where we find the 61.8% Fibonacci retracement.

As expected by our previous posts, the USDJPY has pulled back to back test the Kumo. Price has reached cloud support as a back test after a break out and is now bouncing off cloud support. It is important for the bullish trend to continue for price to stay above the cloud.