USD/JPY Higher

USD/JPY is trying to break out of the range trading in which it's been caught for the last three weeks. The pair made a good bullish rally in the end of September going from 100.08 to 104.16 but since that high things have been very difficult for the bulls. USD/JPY entered into consolidation and for the month of October it has been trading between 102.80 and 104.40.

Currently, USD/JPY is trading at the high end of the range at 104.41 and it appears that bulls may try to break out and close above the last high of 104.63. Main trend for the long-term remains bearish, but the bottom looks very stable indicating that a trend change is likely happening now.

If bulls get a close above 104.70 this might be the beginning of a new rally to the upside with first potential target at 107.50 and major target at 110.

Until then, USD/JPY has to break current resistance and if not, then bears have first target of 103.54 and then they need to get back to the downtrend below 102.

Chart: USD/JPY D1