USDJPY bullish – 12-month rising trendline underpins for higher

USDJPY has been consolidating under the 125.86 multi-year high (June 5, 2015) for over 2 months. If the current rebound off the 120.42 low (July 8, 2015) breaks above 125.28 then 125.86 (as shown on the daily chart), that would confirm a higher base at 120.42, extending the current 12-month upswing towards 126.82 and then 127.50. The 123.79/123.01 support zone above the 12-month rising trendline should support consolidation. However, a downside move below 123.01 would caution for near-term topping and shift the focus lower towards 120.42 (near the 200 day moving average currently at 120.46).