FX.co ★ USD/JPY approaching profit target, prepare to buy above major support

The price has been dropping perfectly towards our profit target. We prepare to buy above major support at 110.21 (Fibonacci extension, horizontal swing low support, bullish divergence) for a push up to the 111.43 resistance (Fibonacci retracement, horizontal overlap resistance).

The RSI (34) is displaying bearish divergence, while the price signalling that a bounce is impending.

Correlation analysis: We are expecting general JPY weakness on AUD/JPY and USD/JPY so this goes in line with our view.

Buy above 110.21. Stop loss at 109.72. Take profit at 111.43.