USDJPY manages to hold the 38.2% fib reaction (104.60-113.17 rally) earlier this week. Since the daily oscillator has picked up and as the daily volatility has stabilized, further rally is anticipated if the condition is satisfied.
Condition: USDJPY sounds finally to retest the resistances seems between the 50.0% fib reaction (113.17-109.77 fall) and 111.65 prior swing low. A break above this barrier would be needed to initiate a more pronounced recovery to 111.90 and 112.30.
Else: Could retrace back to the supports are at 111.00 and 110.50.
Into the Friday US session, market participants shifted focus to Jackson’s Hole economic conference.