USD/JPY Above Bearish Channel

The US dollar has been strengthening against the Japanese Yen for the past few months. Starting in March, the USD/JPY exchange rate went from 104.00 to last week's high of 112.78. The long term bearish channel was broken last week at 111.00 and now the pair is painting a new beginning.

Above bearish pressure, the pair is now exposed to new highs starting with first resistance at 113.50. If that level does not break, we will see a double top with the last high before the final slip to latest low.

This week is packed with significant news as we have two testimonies by Fed Chair Powell on Tuesday and Wednesday as well as Building permits and Philadelphia Fed Manufacturing Index.

Chart: USD/JPY D1