Being contained by the previous high resistance at 108.58, USDJPY formed a sideways consolidation in a narrow range between 107.28 and 108.37. Initial support is at 106.57, as long as this support holds, we’d expect up trend to resume and further rise towards 112.00 could be seen after consolidation. Only break below 106.57 level will signal deeper decline to retest 103.76 level.
For long term analysis, USDJPY is in consolidation to long term up trend. Further rise towards 120.00 is now in favor. However, a break of 108.58 level is needed to confirm such case.