USD/JPY Technical Analysis: Bullish flag breakout support prospects for further gain after upbeat US PPI

   •  Against the backdrop of a strong up-move over the past two trading session, the pair’s intraday slide along a downward sloping trend-channel constituted towards the formation of a bullish flag chart pattern on the short-term chart.

   •  A move beyond the trend-channel resistance was seen as a key trigger for bullish traders, with hotter-than expected US PPI print providing an additional boost and lifting the pair back closer to five-week tops set yesterday.

   •  Given that the pair remains comfortably above important intraday moving averages – 50, 100 & 200-hour SMAs, bullish technical indicators on hourly/daily charts further support prospects for an extension of the positive move.

   •  Hence, a follow-through up-move, led by some fresh technical selling on a sustained move beyond the 114.00 handle, now looks a distinct possibility and could lift the pair further towards Oct. swing high, around the 114.50-55 region.
 

USD/JPY 15-mins chart