In our previous analysis on USDJPY we continued to see price inside a trading range of 110-109 despite the rejection of price at 110. A pull back towards 109 was expected but overall the bearish signal was not so important in order to change our medium-term view.

USDJPY after getting rejected at 110 fell towards 109.13 as expected. Price however remained inside the trading range. As long as price was below the red resistance trend line bears would have control of the trend as price would be vulnerable to more downside. If price were to break the 110 level, that would be a bullish signal as we also mentioned in an earlier analysis. Our target was at least 111. Price has now surpassed this target. Short-term trend is bullish and price is challenging 2020 and 2021 highs. Breaking above them would be an important bullish signal.