- Bullish RSI divergence seen on USD/JPY 2H time frame charts.
- Technical studies are showing upside with RSI, Stochs biased higher.
- MACD is also supporting gains with a bullish MACD line crossover on signal line.
- Scope for test of 2H 20-DMA at 116.25. Breakout there could see test of 116.42 (38.2% Fib of 118.61 to 115.07 fall).
- Support levels - 115.77 (2H 5-SMA), 115.22 (Dec 5 low), 115.07 (session low)
- Resistance levels - 116.25 (2H 20-DMA), 116.42 (38.2% Fib), 116.72 (5-DMA)
Recommendation: Good to go long on dips around 115.65/75, SL: 115.25, TP: 116/ 116.25/ 116.70
