The USD/JPY pair has been trending upwards since the 10th of March 2016, with the bullish pressures being noticed from as low as 112.60 to as high as 114.00.
On Friday, the pair bounced in its attempt to test the 113.90 level, but subsequently fell down to 113.37 and ended up forming a hammer. Today, the pair is currently consolidating between the area of 113.64 and 114.00. With that being the case, the major will probably continue going higher. In the event that the price brakes above the daily high of 114.00, the pair could escalate up to 114.25 and 114.55 respectively.
Alternatively, in the scenario where the sellers manage to gain momentum and force the pair to break below 113.30, the price could go down to 113.14 and 112.60 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.