USD/JPY paused its rally when the price reached the 113.30 mark yesterday. The spot started a neutral phase after that. The price was moving sideways between 113.30 and 113.20 several days. Buyers have been gathering steam all that time and gathered it enough to push the rate higher yesterday. The US dollar pushed away from the lower boundary of the sideways channel and spiked to 113.40 first. The buying bias remained intact after that and bulls were able to extend their vertical rise towards 113.80 after that. Unfortunately, bulls failed to hold onto gains and the currency pair dropped to 113.30. The Tenkan-Sen and the Kijun-Sen are on the buyers’ side slowing the sellers’ advance. The Tenkan-Sen, the Kijun-Sen and the Chikou Span are heading higher. The Ichimoku Cloud is growing. The MACD histogram grew which indicates buyers’ strength. The resistance lies at 113.50, the support is at 113.00.
After a daily close above 113.50 we could see the pair extending upwards to the 113.80 region during the next days.