USD/JPY downside seems to be over, so the greenback can take full control if the USDX and the JP225 increase. Better than expected US data these days should boost the greenback.
Technically, the several false breakouts below 104.18 static support signal reversal. The yen is trading in the red despite the fact that the Japanese Final Manufacturing PMI increased unexpectedly to 48.7 points.
USD/JPY Bullish Momentum In Cards!As you can see on the H4 chart, USD/JPY has failed to close under 104.18 static support in the last three attempts signaling strong buyers around this level. The pair is back above the 150% Fibonacci line of the ascending pitchfork and above the PP (104.57) level. The immediate upside targets are seen at the R1 (105.12) and at the down channel's resistance.
The pair could rebound in the short-term after the rejection from the channel's downside line. A larger upside momentum will be indicated by a valid upside breakout from this down channel.
USD/JPY Trading TipsUSD/JPY should jump higher after the aggressive breakout above the Pivot Point (104.57) level. If you'll buy here, you should hide your Stop Loss under 104.02 low. The near-term take profit should be placed on the channel's upside line.
We'll have a great buying opportunity if USD/JPY will register a valid breakout from the down channel. 107.03 represents a major upside target, obstacle.
The downside seems complete, so only a bearish closure under 104.00 and below the down channel's support could suggest selling again.