USDJPY is in a consolidation pattern on the daily chart, trapped between the tenkan-sen and kijun-sen lines. Support is seen at 122.44, which is the kijun-sen line and also the 50% Fibonacci retracement level of the rise from 118.88 to 125.84. Resistance is around the tenkan-sen line and at the 23.6% Fibonacci at 124.18. A decisive break of this resistance will lead the way for a move higher to retest the June 5 high of 125.84. Above this top, the uptrend that was in progress from mid-2014 could gain more momentum. The market is above the 200-day moving average and this is supporting the bullish bias.
Alternatively, a break below support at 122.44 would see prices target the 61.8% Fibonacci at 121.54. We would need to see a fall below the daily Ichimoku cloud and below the low of 118.88 to see a shift in the current upside bias.
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