USDJPY continues to extend higher after bouncing off a low of 115.55. The pair found support at the 38.2% Fibonacci retracement level of the upleg from 105.19 to 121.84. It is targeting resistance at 119.65. The upside momentum is back as the RSI has crossed above 50 into bullish territory. The Ichimoku cloud is thickening, which is supporting the bullish market structure.
The upside recovery is expected to continue after breaking past resistance at 119.65 to target the 7-year high of 121.84 hit on December 8.