USD/JPY hints at rebound ahead of US PCE
Updated
The resurgence of the yen took a breather on Thursday, allowing USD/JPY to form a bullish pinbar around key support levels, including the 200-day EMA, 152 handle and 2022 MOF intervention level. Given the pair has already retraced 16% since the July high, a technical bounce seems plausible.
A bullish divergence formed on the 1-hour chart ahead of thew strong rally from support, which was accompanied with rising volumes.
Bulls could seek dips within Thursday's range to seek dips and increase the potential reward to risk ratio. The volume cluster around 155.5 (weekly S1 pivot, 100-day EMA) is the next major resistance zone for bulls to target.
A bullish divergence formed on the 1-hour chart ahead of thew strong rally from support, which was accompanied with rising volumes.
Bulls could seek dips within Thursday's range to seek dips and increase the potential reward to risk ratio. The volume cluster around 155.5 (weekly S1 pivot, 100-day EMA) is the next major resistance zone for bulls to target.
Trade closed manually
It reached for 155 but failed to head towards the 155.50 resistance cluster, before hell broke loose and sent USD/JPY sharply lower. 
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