USD/JPY: With a second day of recovery seeing the pair closing higher on Tuesday, further bullishness is envisaged. It was seen following through higher during early trading today. Beware of the 121.50/73 area because it is key to any full blown bullish offensive. On the upside, resistance resides at the 121.50 level, where a cap may occur again. Further out, we envisage a possible move towards its range top at the 121.99 level. Further out, resistance resides at the 122.50 level, with a turn above here aiming at the 123.00 level. A break will target the 123.50 level. Its daily RSI is bullish and pointing higher, suggesting further upside. On the downside, support comes in at the 120.50 level, where a break if seen will aim at the 120.00 level. A cut through here will turn focus to the 119.50 level, and possibly lower towards the 119.00 level. On the whole, USD/JPY remains trapped within its range.
USD/JPY Daily Chart