We recently noted that USD/JPY was establishing bullish momentum, and could be reversing the bearish trend it saw since November when price fell from 114.50 almost 104.50. Price action and the RSI suggests that it is now heading back towards 114.50, and if it does, we might see a bullish breakout.$USDJPY Daily Chart(click to enlarge)Bullish Signs:- The 2 main signs are1) Price is breaking above the 200-, 100-, and 50-day simple moving average cluster. If this cluster eventually serves as support, we can be even more confident of the bullish outlook.2) The RSI went above 70, then after a dip, held above 40. This reflects maintenance of the newly established bullish momentum.- I think price should now start to hold above 110 if USD/JPY is to push towards 114.50.- In fact, if price retreats from the resistance area, and then rebounds at or above 110, a subsequent test of the 114.50 resistance might break it wide open.- A slide below 110 would fog up the bullish signal, at which point we might want to stay on the side and wait for further signals of direction.