The US dollar has recovered back towards the 107.00 level against the Japanese yen after the pair received buying interest from the 106.00 support area last week.
USD/JPY analysis shows that the 106.90 level remains an area of extreme technical importance, both over the short and medium term.
USD/JPY medium-term price trend
The USD/JPY is recovering higher after the pair found strong buying interest from the 106.00 level last week.
USD/JPY technical analysis shows that the pair is only bullish over the medium term while price trades above the 107.70 level.
Price moved back inside a large symmetrical triangle pattern on the daily time frame last week, around the 106.90 level.
The top of the triangle is currently found around the 111.00 level. At this stage, it seems that the top of the pattern is still too far away, and price is unlikely to reach this area unless the 109.30 resistance level is broken.
Possible upside targets for the USD/JPY pair over the medium term remains the monthly pivot point at 107.60 and the 108.00 resistance 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 106.50 level.
The four-hour time frame shows that a bullish falling wedge pattern remains the focus of traders over the short term.
Price recently bounced from the bottom of the wedge pattern, around the 106.00 level. A bullish breakout from the pattern is in play while the price holds above the 106.90 level.
According to the size of the bullish reversal pattern, the USD/JPY pair could rally towards 107.80.
Watch for a sustained upside move above the 106.90 resistance level to confirm a short-term breakout in the USD/JPY pair.
USD/JPY technical summary
USD/JPY analysis indicates more short-term gains ahead for the USD/JPY pair if bulls can hold the price above the 106.90 level. A loss of the 106.50 level should be considered bearish.