USD/JPY has entered into a sideways consolidation on the 4-hour chart after the bounce from the 102.85 lows ran out of steam. USDJPY Currently it looks like a triangle may be unfolding, and we are in wave 3 (out of a probable 5), however, it is too early to be sure.
Nevertheless, some sort of consolidation is forming which will probably end up breaking to the upside, given the prior up-trend and the overall bullish dominance on short and mid-term time-frames. A move above the 104.91 highs would provide breakout confirmation and generate a target at 105.75, with the possibility of a further move up to to the R1 monthly pivot at 106.58 eventually.
Analysis by: Joaquin Montfort LigaForex Analyst