FX.co ★ Bullish setup in USDJPY for January 10th, 2023.

Red lines- wedge pattern (broken)

Blue lines- Fibonacci extension targets

USDJPY is trading just above 132. Price has made a higher low around 131.30-131.50 where we also find the 61.8% Fibonacci retracement of the recent rise from 129.53. At current levels I can see a bullish scenario with 136 as potential target if bulls manage to form a higher high above 134.79. For this scenario to come true bulls must defend 131.50-131.30 and not break below it. USDJPY has the potential to make at least a 100% upward extension relative to the first upward move. This bullish setup is very probable. Bulls risk around 70-100 pips for a potential of 400 pips and more.