Bullish break for the usdjpy pair as it is benefiting from better than expected US data (from a fundamental point of view) and a contracting triangle that broke higher (from a technical point of view).
The fact that this contracting triangle is on the daily chart should be taken seriously as the b-d trend line is broken in less than the time taken for the e wave to form and this is vital for a real break.
Therefore, the 107 target to the upside comes only from the measured move of a triangle, or the so colled thrust, and nothing else.
The pair should be supported on dips and the 101 lows should hold now. Usually such a trend line like the b-d in the chart above is retested, though this is not mandatory.
A contracting triangle acts as either a continuation pattern, or a reversal pattern. In our situation it is acting as a continuation pattern and I would say breaking previous highs is only a matter or time.
But again, this is daily chart so patience is required, especially when considering summer trading conditions.
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