The breakout of 114.75 would indicate that the downside pressure in USD/JPY has alleviated.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘the rebound in USD has scope to extend but a break of the strong resistance at 114.75 is unlikely’. Our view was not wrong as USD rose to a high of 114.64 before easing off. Upward momentum is beginning to wane and USD is unlikely to strengthen much further. For today, USD is more likely to consolidate and trade between 114.20 and 114.65.”

Next 1-3 weeks: “We continue to hold the same view as yesterday (17 Jan, spot at 114.30). As highlighted, while the prospect for further USD weakness is not high, only a break of 114.75 (no change in ‘strong resistance’ level) would indicate that the downside risk that started late last week (see annotations in the chart below) has dissipated.”