There are only a few more days until Christmas and then New Year’s Eve. The market has calmed down considerably because most people are preparing for the holidays.
Despite all that the USD/JPY pair is showing signs that it is preparing for a rally.
We should watch carefully how the monthly bar will close, but if it does close the way it looks like it will, as a third spinning top above the support at 110.50, then the rally is inevitable.
The first resistance to the upside is the zone around 113.75 – 114.00 followed by the zone around 114.80 - 115.20.
To the downside the pair will meet serious support around 112.00 – 111.50 and it is doubtful it will break out below it.