The US dollar is starting to appear more bullish against the Japanese yen, as selling interest below the 106.00 level remains weak.
USD/JPY analysis shows that a breakout from a large falling wedge pattern remains valid while price trades above the 106.50 level.
USD/JPY medium-term price trend
The USD/JPY is attempting to push higher, after sellers failed to capitalise on last week's bearish breakdown below the 107.00 level.
USD/JPY technical analysis shows that bulls need to move price above the 108.30 level to encourage medium-term technical buying this week.
Moving price above the 108.30 level would mean the USD/JPY pair had moved back above its trend-defining 200-day moving average.
Price remains trapped inside a huge symmetrical triangle pattern on the daily time frame, between the 106.90 and 111.00 level.
Sellers’ inability to stage a downside breakout beneath the triangle could cause the USD/JPY pair to rally towards the top of the triangle, around the 111.00 level.
The daily time frame also shows that the 109.30 resistance level offers strong technical resistance this week if a breakout above the 108.30 level takes place.
USD/JPY short-term price trend
Short-term USD/JPY technical analysis continues to show that buyers are in control of the pair while the price trades above the 106.50 level.
The four-hour time frame indicates that a bullish breakout from a large falling wedge pattern has taken place.
According to the size of the wedge pattern, a rally towards the 111.00 resistance level remains possible while price trades above the 106.50 level.
In the short term, a breakout under the 106.50 level could cause the USD/JPY pair to decline towards the 106.00 and possibly the 105.50 level.
USD/JPY technical summary
USD/JPY analysis indicates more medium-term gains towards the 111.00 level if bulls can hold price above the 106.50 level. The 108.30 level is seen as strong upcoming technical resistance.