Also moves outside consolidation area
The USDJPY has been able to stay above a support area that defined a top from the consolidation that has kept the pair in check since March 20. I have that area between 120.68 and 120.837 (see yellow area area in the chart below). Before March 20, the pair moved above - creating the pairs extreme and high for the year (and high going back to 2007).
Looking at the daily chart, the price highs going back to December and January 2014/15 stalled at the 120.67-81 level as well. So I feel confident that this area will be a key "line in the sand" for the pair. Stay above is bullish. A move below and traders will lose some of that bullish loving feeling seen over the last few days of trading.
The pairs break of the trend line yesterday (see chart below) and today's holding of the aforementioned support ceiling, has the buyers in control The next targets will look toward the March highs (see 4-hour chart).
