USDJPY rebounds but remains within the confluence zone. On the H4 chart, we can see that the price remains between 20 MA and 50 MA. Intraday bias remains bullish, as well as the mid-term bias. However, note that there is a minor down channel as seen on the hourly chart. Stochastics are overbought on H4 and H1 chart.
Based on those technical facts, it is quite reasonable to plan short on USDJPY on bearish signal confirmation at the are around the channel’s upper line, with 112.040 as target or 111.794 in extension. This bearish scenario will fail if the price breaks above the channel.
However, my main bias for USDJPY remains bullish, so I think it should be appropriate to plan long on USDJPY within the confluence zone at 112.436-112.040 with 112.682 as target or 113.078 in extension.
Be careful if the market managed to break below 112.040 because it will turn the bias to bullish and possibly will push USDJPY down to 111.794-111.398.
Plan A: Sell on bearish setup confirmation around the channel’s upper line area; target at 112.040 or 111.794
Plan B: Buy on bullish setup confirmation within 112.436-112.040; target at 112.682 or 113.078