USDJPY overall momentum is ascending in which current momentum is descending. Price is currently trading on support of a falling wedge pattern. If price doesn’t break support we could see a rally to the resistance level of this wedge pattern.
The US dollar has rallied a bit against the Japanese yen during early trading on Monday, but the 106.50 level above still controls price. Price needs to break above this level before I think the market is can go higher. If we do break above that level, I think that it can go another handle, perhaps even higher than that. The 108 level opens the door to the 110 handle, however it will need a lot of momentum to make that happen. If the Federal Reserve suggests this week that there is a 4th interest rate hike later this year, then this may put enough bullish pressure on the US dollar to finally make a decent break out.