There May Be A Bullish USD/JPY Correction

The USD/JPY pair broke out below the support zone around 108.00 – 107.50 but it stopped at the next support at 105.54 (in dark green).

That is logical, considering that the pair has reached that support twice in the past few years – once in October 2014 and then back in May 2016. That said, that support is not particularly strong in my opinion, and there is little doubt that the pair will break out below it, but before that it seems we’ll see a corrective move to the upside.

 The last closed bar on the W1 time frame is also a signal for that, as well as the D1 pin bar from 16th February, both of which are hinting at a bullish tendency with a possible rally to 109.50 – 110.
That is just a correction however, and once it’s done I think the pair will head for its next target to the downside, which is the support in the zone around 100.50 – 99.50.