Presently, the USDJPY pair is trading around 109.94-95.We notice that this pair is making all lows higher than the low made in mid-June 2016. On the same note, we also notice that an Ascending Triangle is being formed where price is taking a strong resistance possibly at around 114 Mark and support levels are consistently moving upwards. In a weekly chart, we see price action is bound in a range between these support and resistance levels only.
On applying Bollinger band indicator, the current price is near to the lower band (108.10) which suggests prices to go up to breach Green band (115). This indicator consists of a center line and two price channels (bands) above and below. The center line is an exponential moving average; the price channels are the standard deviations of the asset being studied.
Forecast- Buy USDJPY at current level (109.95) with a target of 114.00 and any close below 108.00 will negate the above view.