FX.co ★ Trading plan for USDJPY for May 31, 2021

Technical outlook:

USDJPY is looking poised to push through 112.00 and higher levels in this wave, which began from 107.47 lows in April 2021. The overall wave structure is that of a corrective rally, which had begun since 101.18 lows in March 2020. USDJPY has managed to carve 2 waves of the overall correction around 111.75 and 102.59 levels respectively.

Since January 06, 2021 lows at 102.59 levels, USDJPY is unfolding its last wave rally, which is expected to be terminated above 112.00 at least. It is seen to be trading around 109.70 levels at this point in writing and is expected to push through 111.00 levels in the near term. Immediate support is seen through 107.47, while resistance comes through 111.75 levels respectively.

Please note that USDJPY had earlier bounced right at the trend line support around 107.47 as seen here. Ideally prices should stay above 107.47 and any intraday dips should be considered as an opportunity to initiate fresh long positions.

Trading plan:

Remain ling, stop @ 107.00, target is 112.50

Good luck!