USDJPY Increasing bullish

The US dollar is gaining upside traction against the Japanese yen and is trading over a one-hundred point higher away from the weekly low. Technical analysis shows that the pair is fast approaching the top of a large falling wedge pattern on the higher time frames. The pattern is showing that a major upside breakout could take place if the USDJPY pair breaks above the wedge, around the 104.50 level.

• The USDJPY pair is only bearish while trading below the 103.50 level, key support is found at the 102.80 and 102.30 levels.

• The USDJPY pair is only bullish while trading above the 103.50 level, key resistance is found at the 104.00 and 104.50 levels