The USDJPY currency pair, on the D1 time-frame, was in a downward spiral until June 23 when a lower bottom was reached at 106.071. Buyers found the price attractive and demand started overcoming supply.
After the lower bottom at 106.071, the price traversed upwards through both the 15 and 34 Simple Moving Averages and the Momentum Oscillator crossed the zero baseline into bullish terrain.
A higher top and possible critical resistence level formed on July 1 at 108.162 and sellers are currently applying downward pressure to the market.
If the USDJPY currency pair breaks through the critical resistance level at 108.162, then three possible price targets may be calculated from there. Applying the Fibonacci tool to the top of the resistence level at 108.162 and dragging it to the bottom of a possible support area near the 15 Simple Moving Average at 107.155, the following targets could be considered. The first target might be projected at 108.784 (161 %) and the second price target could be likely at 109.791 (261.8%). The third and final target may well be expected at 111.421 (423.6%) if the uptrend continues making higher top and bottoms.
If however the 107.155 support level is reached, the bullish scenario above are invalidated and will need to be re-assessed.
As long as buyers maintain a positive sentiment and demand overwhelms supply, the outlook for the USDJPY currency pair on the Daily time-frame will remain bullish.