USD/JPY Will Possibly Continue Rising

A few hours ago, as I was drawing the parallel trend lines I thinking that it’s possible for USD/JPY to form a flag or a pennant, but the price proved me wrong, breaking out above the resistance trend line of the channel.

The pair rose with 36 pips, and, as it could’ve been expected, fell back to test the trend line it broke out above.

Under these circumstances it’s logical for the pair to continue moving to the upside toward 111.80 – 112.00, which was one of the scenarios I talked about in my last analysis of this pair.

I think that we need to watch this pair carefully as it reaches the resistance zone, as it is possible to begin a lengthly range there.

It’s possible for the pair to break out above 112.00 and to continue rising. The reason I think so are the two pin bars at the double bottom on the daily time frame.

We should also be on the lookout for the possible formation of a technical analysis pattern that could bring some clarity how the pair will develop further.