USD/JPY heads towards 113.21

In first half of the day the pair continued to move, as expected. However, a speech delivered by Governor Powell created a favourable impulse for the buck and elevated it against the Yen by 0.36% just in couple of hours.

The fact that the pair did fall below the 112.40 level and made a rebound additionally confirms that it is moving in a medium-term ascending triangle.

As the pair faces no barriers on its way, it is likely to surge to the upper resistance line of this pattern, which is located at the 113.21 level.

Although a fourth rebound seems a more plausible scenario, there is a need to take into account an effect from a release of information about the US labour market later this day, which might lead to premature breakout.