The beginning of the previous week was very hard for buyers of the USD/JPY,and the beginning of the new week shows us that they came back from the long journey—back in the game. Currently, the price is very close to the important resistance created with the line connecting recent lower highs. Breaking that line can trigger a buy signal which will be totally normal if we look at the long-term chart. The closest support is at 103.95, but breaking it is less probable than the upswing. We should witness real attractions on Wednesday, when the BoJ will have its press conference and when we will find out about the monetary policy statement. This usually has a big impact on the USD/JPY; now is the time when technical analysis do not play as important of a role as before.
USD/JPY Daily Chart" title="USD/JPY Daily Chart" width="474" height="242">