The US Dollar is still below the lower supportive trend line, but above 112.170. This is a key support zone and as long as it protects the lower side, we expect a possible rebound from it to buy this pair with our target at 114.00. The anticipated bullish price rally should be the continuation of the impulsive wave (E) to the upper side but should not go beyond upper trendline. Should this support 112.12 be violated, then the price could drop even further towards 110.00. This pair will have a similar price action to CHFJPY, NZDJPY, AUDJPY and CADJPY. These pairs will have a similar price action today.
We’re looking for a buy signal around 112.170.