USD/JPY has started a new bull trend after breaking a 7 month continuation pattern. Friday we consolidated gains as we battle overbought conditions with a dip to trend line support at 102.30. This offered an excellent longer term buying opportunity and as expected we bottomed exactly here. Only a close below 102.00 would be of concern and signal a false break higher last week.
Immediate resistance at 102.60 then June highs at 102.80 before last week's high at 103.05/08. A break higher certainly not out of the question this week despite overbought conditions. Be ready to ignore the overbought scenario and look for a move towards 103.50/55.