USD/JPY is sitting at the highest levels in five weeks just shy of the 115.00 level. Bulls await a move beyond the latter to trigger a further upmove, FXStreet’s Haresh Menghani reports.

Well-established short-term bullish trend

“The recent move up witnessed since the beginning of this month has been along an upward sloping channel. This points to a well-established short-term bullish trend. The positive outlook is reinforced by technical indicators on the daily chart that are holding comfortably in the positive territory. The set-up supports prospects for a further near-term appreciating move.”

“The key 115.00 psychological mark, if cleared, will mark a fresh bullish breakout. The subsequent move up has the potential to lift the pair back towards November monthly swing high, around mid-115.00s, or the highest level since January 2017. Bulls might eventually aim to reclaim the 116.00 mark.”

“Any meaningful pullback now seems to find decent support near the 114.30 region. This is closely followed by the 114.00 mark and the 113.80-75 region. A convincing break below the latter would shift the bias in favour of bearish traders and prompt some technical selling.”