A closing breakout above 110.00 on a strong bull candle is certainly a positive signal on USD/JPY
. This continues the recovery trend on the dollar and shows that consolidations continue to be bought into. Momentum indicators are ticking higher, although perhaps there is a less effusive response than maybe could have been seen, however there is still further upside potential within this move. The initial resistance of the February high of 110.47 has just limited the move higher initially, but the bulls will be looking to take out this resistance which would help to further break the shackles. This would then open the next resistance between 111.50/112.00. The Daily chart
shows strong momentum and that intraday weakness is a chance to buy. There is breakout support now 109.80/110.00 as an initial buffer to the downside, with 109.15 now a higher low above the key reaction low at 108.60.