USDJPY Technical Analysis - the daily close above 107 may set the pair up for a grind towards the next psychologically-significant at 108

USDJPY bulls have seemingly lost confidence as indicated by a medley of Doji formations and short body candles. Yet in the absence of clear reversal signals there remains the potential for a journey higher to resume. The daily close above the 107 hurdle may set the pair up for a grind towards the next psychologically-significant ceiling at 108.00.

The four hour chart reveals a congestion zone has formed between 107.00 and 107.40. A parade of short body periods and Doji candlesticks highlights hesitation amongst traders. Yet the bulls appear unprepared to relinquish their grip on prices amid a void of bearish reversal signals. This leaves the pair awaiting a break above 107.40 to open the next leg higher.