Is USD/JPY ready to break into near territory?

USD/JPY appears able to bust higher above the March highs of 110.97
In early June 2015, USD/JPY hit a high of 125.86. almost 1 year later, price had fallen to a coffee of 98.79! USD/JPY has been oscillating within that range since then, forming lower highs along the way. At the start of the pandemic in February and March 2020, USD/JPY tried to push above the downward sloping trendline from the highs but failed whenever . That is, until March of this year. In March, USD/JPY finally closed above the trendline. Price pulled back to retest the trendline and therefore the RSI moved from overbought conditions to neutral. Now, USD/JPY appears able to bust higher above the March highs of 110.97.

On a daily timeframe, USD/JPY had continued moving lower since the pandemic highs and eventually narrowed towards the apex of a descending wedge (green). It then formed a coffee at 102.59 on January 6th (price did not remove the spike low during the coronavirus volatility in March 2020). USD/JPY continued to maneuver higher (along with the US Dollar Index) and broke above the future weekly trendline (red). Price traded as high as 110.97 before correcting. Notice that the RSI had been overbought for two weeks before reaching those highs, a sign that USD/JPY may are ready for a pullback.

USD/JPY then pulled back to the 38.2% Fibonacci retracement level from the January 6th lows to the March 31st highs, near 107.73, however did not close below it. USD/JPY also remained above the long-term trendline from the weekly chart. Price has been drifting higher since and appears to be able to remove the 110.97 level from late March!

Everything you ought to realize the japanese Yen

On a 240-minute timeframe, USD/JPY has been moving higher along a trendline off the January 6th lows green line) and is testing the March 31st highs. If price moves above 110.97, subsequent resistance level isn’t until 112.22. which is that the high from February 2020 (see daily). Support is below at the upward sloping trendline near 109.85. Below there, price can fall to horizontal support near 108.16, before the April 23rd lows of 107.48.

Note that the BOJ meets on Friday. Revisions to forecasts are expected, however nothing market moving. Also still watch the parade of Fed speakers in the week for clues on when the Fed may announce tapering. As of the time of this writing, Fed Chairman Powell is speaking, however markets aren’t reacting to any of his comments.