USDJPY breaking out
The US dollar is testing the 109.00 level against the Japanese yen in early Wednesday, with bulls advancing price above the neckline of an inverted head and shoulders pattern. The pattern shows an upside move towards at least the 110.00 resistance level. The testimony from Federal Reserve Chair Powell will be the market mover for the USDJPY, with bulls needing to hold the pair above the 108.78 level.
The USDJPY pair is bullish while trading above the 108.78 level, key technical resistance is found at the 109.40 and 110.00 levels.
If the USDJPY pair trades below the 108.78 level, key technical support is found at the 108.45 and 108.10 levels.