USDJPY has broken the bearish channel it was in for the last few months and as we noted in our previous analysis trend is now changing to bullish and we expect price to reach 106 soon. Price has already reached 105 and we continue to expect to see more Dollar strength this week.
The RSI has still not reached overbought levels. Price is clearly breaking out the bearish channel and we at least expect a partial retracement of the entire downward move that started back in March 2020 when price was at 111. Our 106 target is just the 38% Fibonacci retracement of the entire decline. Strong resistance is found in that level and bulls should not get overconfident when and if we reach that price. For now trend is bullish and there is no sign of reversal.
