USD/JPY has been in a long downtrend due to a weak dollar (fundamentals & geopolitical issues) and the strength of safe haven assets such as JPY. Recently though the dollar showed some life after bouncing off a major support zone mid week. A continued move up to the 111ish area is expected based on a minor change in market structure that made a FTR (fail to return) zone which created a HH (higher high). This FTR zone was retested when NFP numbers were released worse than expected but quickly the price started rising again as buyers jumped on a good opportunity. Based on the strength of the buyers at this moment I could see the previous 4hr candle wick being filled and price moving towards 111. If price gets to this area we will see how it reacts in this zone. The long term bias is down for USD and things geopolitically between them and NK don't seem to be improving. I can expect and look for a sell signal in this zone to take price lower. If this zone fails to hold 112 looks like the next upside target. Be aware that we just had a long downtrend so price needs to move through its waves.
Comment:
GAPS at market opened played a role. Analysis no longer valid
