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Fan Yang

USD/JPY Signals Bullish Outlook Towards 114

USD/JPY has been consolidating a bit in the last few weeks, but appears to be ready for a bullish run towards a key resistance in the 114-114.50 area. 

$USDJPY Daily Chart

(click to enlarge)

Bulls Taking Over:
- USD/JPY has been bearish and choppy going into 2018. 
- After a price bottom in April, USD/JPY has been rallying, eventually breaking above a falling resistance in July. 
- Meanwhile, price also broke above the 200-, 100-, and 50-day simple moving averages (SMA). 
- So far price has been able to bounce off of the moving average cluster as support, which is a strong sign that bulls are taking over. 
- Furthermore, the RSI pushed above 70, and has since held above 40, other than a very brief violation below in August. This reflects maintenance of bullish momentum.
- Finally, we saw some consolidation in the past couple of weeks, but saw price break out of this consolidation at the end of last week.
- As long as price holds above $111.40 this week, there should be upside pressure towards the 114-114.50 resistance area. 

USD/JPY 1H chart

(click to enlarge)