EUR/JPY broke key support level 131…
USD/JPY projected to test 112.81
USD/JPY remains favored by the bullish bias, which strengthened after the formation of a bullish divergence in the RSI indicator two weeks ago. That’s why we’re drawing a Fibonacci expansion which should give us the upcoming key targets. According to that, the pair should extend its price action towards 112.81 and 113.96 (100%). To confirm such scenario, we should witness first a bullish crossover of the 50 SMA with the 200 SMA at H4 chart.
To invalidate that outlook, we should see a break below the support zone of 111.02, in a move that could open the doors to test the former resistance around 110.45. RSI indicator remains in positive territory, supporting the upside.
There isn't any reversal pattern so far. If the 21 MA acts as resistance, we're likely going to have just another decline...
Expanding bullish Ichimoku Cloud with rising Senkou Span A; a cancelled golden cross of Tenkan-sen and Kijun-sen; the prices are returned to the support of Tenkan and Kijun and may go higher.
Narrow bearish Ichimoku Cloud with horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen, but the lines are horizontal; the Bulls can’t breaking out the resistance of upper border of the Cloud and the market may return to 113.00.