Looks toward topside targets
The USDJPY is getting a boost after the better data this morning. More favorable technicals are also helping.
Looking at the hourly chart, the London morning low fell briefly below its 100 hour moving average (blue line), but help support against a trendline connecting recent lows. The price quickly reverse higher.
The better data push the price to new session highs and is now looking to break above the swing area between 109.92 and 109.952. That area was a swing high back on May 27 and May 28, before breaking higher to the cycle extreme at 110.191. That break was short-lived and after moving back below the level, there was a another test on May 31 where sellers showed up and pushed price back to the downside.
Now with the price moving back above that swing area, the technicals should point to higher levels. The topside channel trendline comes in around 110.07. Above that is the cycle extreme at 110.191.
What would hurt the bullish bias?
Moving back below the high from yesterday near 109.87 and the swing high from earlier today 109.84 would likely give intraday buyers some pause for cause especially after the break above the swing area now.
Overall however, the buyers have stepped higher over the last few days. The price is back above its 100 hour moving average. The price is trading above the swing area near the extreme. Even going back to the lows from Monday, Tuesday and Wednesday a solid floor was developed that based the pair for a run to the upside (it was also near the 50% midpoint at 109.372). So buyers are more in control.