FX.co ★ USDJPY breaks above key short-term resistance

USDJPY is breaking out. Price has finally broken above the horizontal resistance at 108 area and is moving towards our first target of 109. Price so far has made a high at 108.85 and we continue to be bullish as long as price is above 108.

Green rectangle - horizontal resistance

Blue line -long-term resistance

Black lines - wedge pattern

USDJPY is approaching our target of 109. Price has broken above resistance at 108 and now this is key support. Bulls do not want to see price break below 108 again as this will imply more downside to come. Next target and resistance as we said earlier is at 109. Next target is 111.50 but we need to be patient. A pull back towards 108.30 is not out of the question, however bulls would want to see such a pull back followed by a strong bounce.