USD/JPY also looks poised for a contra move. After trading below support posed by the 50% fibo of 104.18-121.38 at 112.75, the pair formed a hammer on the daily and closed above the mentioned support. RSI on the daily is sloping up and just below the oversold barrier of 30, favoring yesterday’s low as a short term bottom. Yesterday’s comment that “Positive divergence on the dealer charts along with the pair hugging the lower Bollinger band on the daily leaves possibility for a contra move” did indeed proved accurate. Resistance comes in at the 4/24 low of 114.23 with additional strength targeting the 38.2% fibo of 118.82-112.32 at 114.80. The 50% fibo of the rally from 104.18 to 121.38 at 112.75 remains initial support with yesterday’s low at 112.33 as additional support.