The USD/JPY is trapped in a range mode particularly because Trump’s protectionist policies that can give some USD strength vs JPY but can cause weakness against EM currencies. USD is gaining its power mostly due to US monetary policy which suggest 2-3 more rate hikes. Conversely Japan yield curves are relatively low.
Technically we can spot a POC zone within 113.45-70 zone ( L4, ATR low, Inner trend line, ascending trend line). Retracement in the zone could spike the pair up. Target is 115.60 followed by 115.80. However a clear 4h close above 115.85 is needed for a further continuation up towards 116.65 and 117.85. However if the pair closes below 113.50, we might see a stop grabber and additional momentum towards 112.00 zone.
Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets