Three month rally on the USD/JPY

On the monthly chart of the USD/JPY we can see that during the last three months the pair has been rising and reaches a high around the 118.64 level. The bullish trend is still in place and there could be a breakout of the 118.64 level in January. If the price breaks above the 118.64 level, it may stay consolidated between that level and the 125.79 level during the first few months of 2017. To the downside, the 114.00 level could act as a support along with the 109.00 level. The future plans of the FED for next year could keep the pair strong, but there could also be some mention of intervention by the Bank of Japan, since a weaker Yen may not be in the best interest of the rising sun country.