USD/JPY Technical Analysis:110.30 breakout zone
USD/JPY technical analysis indicates that bulls remain in control while price trades above the 109.35 level. Upside targets for the pair currently extend towards the 111.50 to 112.00 region.
The US dollar was confined to a narrow trading range against the Japanese yen currency last week, as bulls and bears continued to do battle around the 110.00 level.
USD/JPY analysis shows that if a breakout occurs above the 110.30 level the pair could suddenly explode to the upside.
USD/JPY medium-term price trend
The USD/JPY pair became trapped in a narrow price range last week, as bulls failed to gain traction above the 110.00 level, and selling pressure below the 109.70 level remained muted.
Market fears over the spread of the coronavirus have seen the upside in the USD/JPY pair capped over recent weeks.
USD/JPY technical analysis over the medium term shows that the pair has the potential to test towards the 111.50 level if the 110.30 level is overcome.
A large rising wedge pattern is currently in play across the daily time frame and points to the 111.50 level as potential upside target.
Moves back towards the 109.50 to 109.35 levels are likely to be used as dip-buying opportunities. A loss of the 108.90 level may cause medium-term bulls to turn bearish.
USD/JPY short-term price trend
With the USD/JPY pair contained to a tight trading range over the short term an explosive directional may be around the corner.
USD/JPY technical analysis over the short term shows highlights that bulls are in control while price trades above the 109.35 level.
With this in mind, traders should watch out for a confirmed breakout of 109.35 to 110.30 over the coming days.
A bullish inverted head-and-shoulders pattern on the lower time frames highlights the 112.00 level as a potential upside target.
Meanwhile, a downside breakout could see the USD/JPY pair testing towards the 108.50 level, at a minimum.
USD/JPY technical summary
USD/JPY analysis shows that the USD/JPY is preparing for a large directional move. Watch out for a confirmed breakout from the 109.35 to 110.30 price range over the coming days.