107 for the USD/JPY

The USD/JPY continues its rally and reaches the 107.00 level where it is trying to stall at the moment. Usually, those round number levels tend to act as support or resistance zones, but the bullish momentum on the pair is such that it may break it to the upside and continue towards the 109.00 level. The better than expected earnings reports out of the US is making the Dollar rally. With a rise in risk appetite, the Yen suffers and falls, hence the bullishness on the USD/JPY. In case of a bearish pullback, the pair may retrace to the 55 day exponential moving average, purple line, around the 105.41 level. If such scenario develops, then the pair may form a breakout-pullback pattern around the 55 day EMA.