The USD/JPY price has been climbing high after the big Pin Bar candle was made on the second of January with a low at the level of 105.13. Currently, the price is almost 500 pips higher as it had made a local high at the level of 109.90. This level is only 28 pips below the projected target at the level of 110.18 at 61% Fibonacci Extension.
Moreover, the price is still trading inside of the upwards channel marked in orange, so the short-term trend remains bullish and in order for the trend to reverse, the price would have to break below the level of 108.40 which is in line with the lower parallel channel line.
The nearest technical support is seen at the level of 109.46 and the next one is seen at the level of 109.09. The nearest technical resistance is seen at the level of 109.90.
Recommendations:
The momentum remains strong and positive with no sign of divergence, so the short-term outlook remains bullish with a target seen at the level of 110.14. Only a breakout below the level of 108.50 would change the current outlook to bearish.
