USD/JPY upside breakout out of symmetrical triangle pattern?

FX:USDJPY   U.S. Dollar / Japanese Yen
From a technical standpoint, we see that USD/JPY is consolidating in a symmetrical triangle pattern formation. This is most likely due to the NFP report being released tomorrow - traders are gearing up and anticipating a big move depending on the numbers. Entering long on a break of 121.00 could lead price up to the 1.618 fibonacci extension level, which is roughly at 125.70.

From a fundamental point of view, the pair's upside potential makes sense considering recent USD strength. However, the fact that US interest rate hikes were practically confirmed to not occur in the first quarter, this could have some negative impact on the USD - on the other hand, traders might become more confident about the future interest rate hike if the NFP report comes out positive - this would obviously induce confidence in investors and we could see the US dollar appreciating against the Japanese Yen in the very near future.


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