Having firmly broke out of the triangle formation from the ascending and descending trend lines, USD/JPY is now range bound between 84.26 and 84.88. A break above the short term trend will be necessary to determine the next direction point. That being said there is pressure to the upside given the strong comments from the government on Friday morning.
USD/JPY traders would do well to pay attention to what the government says. If Japan intervenes to weaken the yen, expect USD/JPY to take a big jump. In the short term, the U.S. GDP and comments from Fed Chairman Ben Bernanke are important. Remember that whatever is bad for the U.S. economy will pressure USD/JPY lower, and vice-versa.
