USDJPY is back on the upside after consolidating around the key technical level of 108.00 earlier this week. The hawkish FOMC statement acted as a catalyst for a surge higher and resulted in a daily close above this key 108.00 level. Prices are now into the next handle at 109.00. The market has retraced 78.6% of the downleg from 110.08 (October 1 high) to 105.19 (October 15 low).
Momentum is bullish as the RSI is above 50 and rising. There is scope to target the October 1 high of 110.08. The kijun-sen line has turned positive.
To the downside, support is seen in the area between 108.00 and the top of the Ichimoku cloud at 108.15.