The USD/JPY opened higher with a common gap caused by thin liquidity and Abe-Trump talks. The pair needs to continue below a bullish order block -113.44 in order to close the gap. POC zone is 112.90-113.05 (L3, ATR low, EMA89, 50.0). If we see more retracement to the downside POC 2 is the final confluence zone for a bounce 112.55-65 (Ascending trend line, L4, 78.6). Targets are 113.50 followed by 113.75 and 114.20. The pair is bullish now and will remain bullish as long as 112.00 holds.
Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets