There’s A Breakout Above The USD/JPY Resistance Trend Line And The Gap Hasn’t Been Recovered

USD/JPY broke above the resistance trend line of the last corrective move to the downside from 118.606 to 111.592 and continued rising.

The notable thing is that the breakout occurred through an over 30 pips gap after the market opened today, but the pair made no effort to recover it and continued moving to the upside during the Asian session. That gap still hasn’t been recovered.

Today during the European session the pair tested the trend line it broke above, but immediately rebounded from it.

This breakout and the unrecovered gap, together with the range above the trend line, give me a reason to think that the pair will continue moving to the upside. Before that happens, however, it’s possible for it to fall once again to test the trend line.

I think that the closest target to the downside is at 113.20 – 113.00, and to the upside the short-term target is around 114.50 – 115.00.