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

Price has continued to drop since yesterday. We prepare to buy above 109.92 support (Fibonacci extension, horizontal swing low support) for a push up to at least 111.00 resistance (Fibonacci retracement, horizontal swing high resistance).

RSI (34) sees bullish divergence and also an ascending support line holds it up nicely.

Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EURJPY, AUDJPY and USDJPY.

Buy above 109.92. Set stop loss at 109.61 and take profit at 111.00.