Looking at USD/JPY’s 4-hour chart, we can see the continuation of its uptrend, as the yen devalues against the dollar for the fourth week in a row, accounting for a 4% move since its inception.
During the past week, it pushed further upwards into the 114.5 region, where it attempted to consolidate its gains and geared up for another surge.
We have seen a slight retraction the current week, cooling down from the high to the 114 price range, which was rejected a couple of times, so it is a temporary informal support.
The pair trades around the 114 price range, with overhead resistance near 114.5 and support at 113.6.
Today we could expect a pattern continuation as the momentum is still very much by its side. Therefore, a move towards 114.5 and beyond is likely.
If it doesn’t manage to hold on, it could move towards the support of 113.6.
