USD/JPY Forecast May 11, 2016, Technical Analysis

The USD/JPY pair broke higher during the course of the day on Tuesday, testing the 109 level. In fact, we ended up likely to test the 110 handle. That of course is a large, round, psychologically significant number, and that resistance should continue to go towards the 112 level. In the short-term though, it does look like we are going to continue to see bullish pressure, but we have to question how much longer it can go on? The fact that we are closing towards the top of the candle suggests that the buyers are still very interested.