USD/JPY has finally managed to pass above the ascending pitchfork's median line indicating further growth. I've told you in my previous analyses that the pair should extend its swing higher if it jumps and closes above the median line (ML).
USD/JPY should continue higher if the USDX continues to increase in the upcoming period. Technically, the pair confirmed a further upside movement with its latest development. The price stands at 106.87 at the time of writing and it could approach and reach fresh new highs if the US reports more positive economic data during the week.
USD/JPY Strongly Bullish!
The aggressive breakout above 106.22 signaled a breakout through the median line (ML) as well. You can see that the price has failed to reach the median line (ML) in the past but it has maintained a bullish outlook after failing to approach the lower median line (LML).
The fresh higher highs and higher lows confirm a strong uptrend, so the USD/JPY could resume its upside journey. Reaching the median line (ML) in the end and closing above it is seen as a bullish signal, USD/JPY could run far above 107.00 psychological level.
The bullish bias remains intact, USD/JPY should increase as long as it stays above 106.22 and above the Pivot Point (106.04).
The median line (ML) retest represents a bullish signal with an immediate upside target at the R1 (107.16) level. The major upside target is seen at the ascending pitchfork's upper median line (UML), near the R3 (108.93) and 109.00 psychological level.
Jumping and closing above 107.00 and above the R1 (107.16) suggest a larger upside growth.