Buying dips in USDJPY (105.60-105.50 zone)
We look for USDJPY to be the driving force behind the recovery in YEN crosses.
Monthly: Far too early to tell but USDJPY is possibly forming a bullish reverse Head and Shoulders pattern. A break of the neckline at 127.25 is needed to confirm the breakout. We have seen a reaction higher from the 50% pullback level of 100.65 (from 75.56-125.74)
Daily: We look to have completed a bearish Elliott Wave formation (5-wave pattern). Levels close to the 261.8% extension level of 104.54 (from 114.74-110.84) have found buyers.
Intraday (four-hours) – Impulsive move to the upside from the 22nd March low trade (104.63). The move lower has been mixed and volatile, common in corrective formations. The channel base is seen at 105.51. This is close to our bespoke support (at 105.53) and the 61.8% Fibonacci pullback level of 105.53 (from 104.63-107.00)
Buying: in the 105.60-50 zone