The USD/JPY retreated from a high on the year at 121.84 last week to 115.56 this week before stalling. Then, after the FOMC decision yesterday (12/17), the USD/JPY rallied and is signaling bullish continuation. USD/JPY 4H Chart 12/18 (click to enlarge) The 4H chart shows the pair rallying above a falling speedline. Now USD/JPY is trading above the 200-, 100-, and 50-period SMAs. This technical development signals bullish continuation. The next step will be a break above 120, and the 4H RSI pushing above 60.The market then will have the 121.80-122.00 area in sight, with risk of breaking into new highs on the year.At this point, the market is bullish as long as it holds above 107.50. Below that, it is unclear, but a break below 117.00 would likely keep USD/JPY in a consolidation, bearish correction mode.