Taking into account the bullish momentum on pretty much every timeframe, it would almost be rude not to test 120¥
The bullish momentum from the all-time lows continues to increase at break-neck speed, punishing those brave / foolish enough to try and pick the top. With Monthly and Weekly momentum so bullish then until further notice, there is only one direction to be trading at present in my humble opinion.
If we were to close the month above current levels (+5.5%) then it is interesting to note that not a single time has USDJPY managed to close this high in two consecutive months. That is not a sell signal or a bearish note – but something to consider when setting your targets for the year-end.
Now we have broken above 118 I doubt it will be too long before we reach 120, seeing as we are only 170 pips below this key level. IN fact with an average daily range of 110 pips we could even reach there by Monday.