Now, pay attention the 5th attempt that it tries to break out from the 618 FIB level. 2 things to take note : 1) The price has breakout nicely from the upper channel, i.e. 112.73 level. 2) Weekly charts show the decrease in selling and buying has taken over (see the candles). It also shows a nice pattern with the C pattern forming in process. It should hit 125.78 to align with the peak in June 2015. Of course, this is a tall order and may take many months to fulfil.
The yen has to be weaken further to benefit the exporters of Japan and this is in line with what Mr Abe wants as well. Take a look at Nikkei 225 , it has recently break out the psychological high of 21,000 (50% FIB level on the monthly chart)and now sits at 22681.40. There is a positive co-relation between this index and USDJPY if you do a comparison. I expect some profit taking on Nikkei 225 in the short term which means USDJPY is likely to be sold off in the short term. Watch 112.95 to 113.12 and monitor if it will rebound from this price zone.
If it breaks 112.95 ( or the pattern), then it will goes further south towards 112.77 (50% FIB level).
It is a buy for USDJPY but not now, watch the price action on lower time frame and let it tells you what action to take. Patience pays.
It did break the support of 112.95 and pierced through hard on the 50% FIB level and went down beyond 112.77, now sitting at 112.518.
It could potentially went further south to the 38.2% FIB level which is 111.878 before we see a pull back.
If you have not short, don't chase price unless you have a clear strategy. If you are waiting to buy like us, watch the price action.