FX.co ★ USDJPY preparing for new highs above 111.20.

USDJPY remains inside the short-term bullish channel and shows signs of strength, price is breaking out of a bullish flag pattern targeting 112 and higher.

Blue lines- bullish channel

Red lines - bullish flag

USDJPY remains inside the upward sloping channel as can clearly be seen in the chart above. Channel support is at 110 and resistance is at 111.55.

Price today is breaking above the bullish flag pattern. The flag pole started around 109 and ended around 111. Breaking the flag at 110.70 we can assume an equal to the pole size in the coming rise towards 112.70. Confirmation of this break out will come with a daily close above 111.25.