The US dollar has started to move higher against the Japanese yen currency over recent days after the pair recently had limited selling interest below the 107.00 level.
USD/JPY analysis shows that the pair is working triangle patterns over the short and medium term and may test towards the 111.50 technical area.
USD/JPY medium-term price trend
USD/JPY technical analysis over the medium term shows that the pair is technically bullish while the price trades above its 200-day moving average, around the 108.30 level.
With the USD/JPY turning technically bullish buying interest is starting to pick up towards the risk-sensitive pair.
Traders who are bullish towards the USD/JPY pair may target the 111.00 resistance area, as this is a key technical area on the daily time frame.
The daily time frame shows that a large symmetrical triangle pattern is in play, with the 111.00 level the top of the triangle.
It is also noteworthy that a bearish double-top pattern is in play after the recent failure around the 111.70 area.
Failure to negate the double-top would be a medium-term negative for the USD/JPY pair, and could result in the price falling back towards the 104.50 level.
USD/JPY short-term price trend
Short-term USD/JPY technical analysis highlights that buyers are in control of the pair while the price trades above the 108.50 level.
The lower time frames show the existence of an ascending triangle, with the top of pattern found around the 111.50 level.
Short-term USD/JPY bulls are likely to target the top of the pattern while the price holds above the bottom of the triangle, around the 107.60 level.
Looking at the upside potential for the pair if a bullish breakout occurs, the size of the pattern implies a rally towards the 114.00 level may occur.
Watch for a breakout from the 107.60 to 111.50 price range as it will provide an indication of the USD/JPY pair’s next short-term directional bias.
USD/JPY technical summary
USD/JPY analysis indicates more gains ahead for the USD/JPY pair while the price trades above the 107.60 level. The 111.00 level remains a key upside target over the short term.