Technical analysis for the USD/JPY, the pair rejected support and 0.618 FIB retracement on the daily chart with a low-test candle, which is a signal for a bounce. The first target of this bounce is the 0.382 FIB retracement at 114.60 on the daily chart. The second target is the 0.618 FIB retracement at 115.25. The third target for the bounce in the USD/JPY is the previous daily high at 116.35. And a break above 116.35 will resume the bullish weekly wave for the USD/JPY pair and open the door for a bullish run toward the 1.272 FIB extension at 118.20.
On the other hand, if the USD/JPY breaks below the bearish flag on the daily chart and below the last week’s low at 113.48, that will start a bearish run. The first target of this potential bearish run is the previous weekly low at 112.53. The second target is the 0.618 FIB retracement on the weekly chart at 111.60.