USD/JPY has continued to increase, even though the US Non-Farm Payrolls and the ADP Non-Farm Employment Change disappointed last week by dropping in the negative territory.
Technically, the pair has recovered as the USDX and JP225 have jumped higher in the short term. A strong increase registered by the US Dollar Index should push USD/JPY towards new highs in the upcoming period.
USD/JPY Falling Wedge Needs To Be Confirmed!
USD/JPY flirts with the Falling Wedge's resistance line, a valid breakout above the downtrend line could add a great buying opportunity. Still, you should be careful because any false breakout with great separation or a major bearish engulfing could send the rate down again.
The price is traded right below 104.18 static resistance (support has turned into resistance). Jumping and consolidating above this level and above the downtrend line represents a bullish reversal signal.
Buy a valid breakout above the downtrend line and through the 104.18 level and use the 106.00 as a potential upside target.