• USD/JPY started a fresh rally after breaking resistance at 111.00.
• Bullish trend line has formed support near 111.55.

The US Dollar, Japanese Yen pair turned bullish after testing support near 110.80. continued to climb after breakinUSD/JPY has continued to climb, breaking above multiple resistance levels. 

USD/JPY 4-Hour Chart (Trend: BULLISH)

On the 4-hour chart, the pair gained momentum after breaking above the 111.00 level. It tested resistance around 111.50, which is also close to the 50% Fibonacci retracement level of the recent downward move from the swing high of 112.07 to the swing low of 110.82. The quote reached as high at the 111.80 resistance level, then corrected downwards towards support from the key bullish trend line, before resuming its climb. The pair is currently trading close to 111.90.

If the pair continues to be bullish, it will first need to break above the 112.00 resistance level. The next major resistance is near 112.40. Further gains could see the quote return towards the 113.20 level, not seen since early 2020.

In contrast, if the pair turns bearish, the first support level is down near 111.50 and the bullish trend line. A break here could see it drop down towards the 111.20 support level. If each of these break, momentum will likely increase, the quote potentially testing support near the 110.40 level.