Bank of America Merrill Lynch discusses USD/JPY technical outlook and flags a bullish pattern underway with a scope of 118.80 on a clear break of 114.45.
"The weekly chart of USD/JPY has broken two thresholds of technical significance. Price action last week closed above the 200wk SMA for the first time in over a year and the weekly RSI is accelerating. Trend following conditions such as MACD and Ichimoku are in a bullish position.
We see resistance at 114.45 and breaking through that opens a higher path to 118.60. Given our view on US rates (broadly bearish and to sell a rally) it may be right to wait for a dip in USD/JPY to position for further upside," BofAML notes.