At the monthly chart we see that the currency pair USDJPY after declines happening since the middle of last year reached a very important support @101.00 coinciding with the 50% Fibonacci correction of previous increases. The rejection of this level could be the beginning of appreciation, for which the potential target would be resistance around 124.00.
If we look at the daily chart we notice that yesterday the strong growth impulse from the ongoing for three months triangle broke the bearish trend line. The nearest resistance turns out to be the bearish zone around the 104.16 level, breaking which would open the way for further increases and by creating a new, higher top we could talk about change of market sentiment.
It is quite possible that before continuing growths market will decide to retest the downward trend line – this time from the top (as support).
