FX.co ★ Short-term USDJPY analysis

USDJPY has reached very close to our 106 target and is now pulling back. The week has started on a negative note for USDJPY bulls. We expect this pull back to be short-lived. The key short-term level of support and possible pull back target is at 104.80.

Black lines- Fibonacci retracement

USDJPY is turning lower and the RSI from overbought levels is turning lower. We consider this as a short-term pull back. The 38% Fibonacci retracement is the most possible target and a very solid support level. I believe this pull back is a buying opportunity. Bulls do not want to see price break below the 38% Fibonacci retracement. Bulls want to see price continue making higher highs and higher lows. Upside target remains at 106.