Since the beginning of the year the currency pair lost overt 3.5% but last week ended flat with a minor gain of 0.1% and is in an accumulation phase since mid-September.
Last week the USDJPY initially tried to rally but found enough resistance near 113.690, to trim most of its gains but closed in the green although near the low of the week, in addition managed to close within the previous week range, which suggests being slightly on the bearish side of neutral.
The currency pair remains in a consolidation zone that began in mid-April and goes from 114.537 down to 108.78.
The stochastic is showing a strong bullish momentum and crossed above the 50 mid line.
Expecting an upward move to the higher band of a weekly resistance at 113.690 on a bounce from a Fibonacci retracement at 111.986 (scenario 1) however a break below the Fibonacci retracement at 111.986 may fuel a bearish run down to the 50.0 Fibonacci retracement at 109.925 (scenario 2).