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09.02.202118:39 Forex Analysis & Reviews: USDJPY pulls back as expected

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USDJPY is trading at 104.65. In our last analysis we warned bulls that a pull back towards the 38% Fibonacci retracement at 104.80 was imminent. Price has moved a bit lower than this level but as long as price is above the important low of 103.30 bulls will remain in control of the trend.

Red lines - bearish channel (broken)

Black lines - Fibonacci retracements

USDJPY has broken below the 38% Fibonacci retracement but remains above the 61.8% key Fibonacci level and the previous resistance at 104.30 which is now support. Bulls do not want to see price break below 104.30. Such a price movement will increase chances of breaking below of the important low at 103.30. So far this pull back is justified and considered a buying opportunity. The area from 104.65 to 104.30 is an area that bulls could try opening long positions expecting a reversal and a move higher above 105.50. 103.30 should be used as stop.

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