USD/JPY: Active buy-side campaign towards 114.40-50

Cycles & Levels: The alignment among the weekly, daily and hourly makes me a bull for a test of 114.40-50 as per the 100% fib projection target off the newly validated up-cycle. Buyers managed to build higher value by finding equilibrium around 113.20, which is a precursor to seeing higher auctions as per price discovery dynamics. If waiting for deeper setbacks, this looks like a market that is about to take off without gifting us with discounted prices down at 112.60-20 key areas. If you are more of an intrepid intraday trader, a retest of 113.00 might be an attractive proposition.

Correlations & Volumes: As noted in my previous report, the market is going through what appears to be a perfect bullish storm. Not only we have recurrent positive structural views, but both the US vs JP yield spread and risk sentiment favors an appreciation of the rate. Subject to the US midterm election, this market shows strong indications that the next destination is north-bound.