USDJPY Wave Analysis – 5 August, 2022

• USDJPY reversed from support level 131.40

• Likely to rise to resistance level 136.00

USDJPY recently reversed up from the support level 131.40 (former monthly high from May), intersecting with the lower daily Bollinger Band and the 61.8% Fibonacci correction of the upward impulse wave 1 from May.

The upward reversal from the support level 131.40 created the daily Bullish Engulfing – which started the active impulse wave (iii).

Given the clear daily uptrend and the strongly bullish USD sentiment, USDJPY can be expected to rise toward the next resistance level 136.00 (former monthly high from June).