USDJPY soars to five-year highs

USDJPY soars to five-year highs
The USDJPY pair surged again and conquered the 116 threshold for the first time since December 2016. At the time of writing, the pair was up nearly 1%, trading at around 116.30.
Additionally, options pricing suggests there may be more gains for the dollar in a rally against the yen that’s already taken it to the most substantial level in more than five years.

Later today, the December ISM manufacturing survey is due, showing the early impact of the Omicron variant on supply chains, while the JOLTS data will show the balance between job openings and unemployment numbers.

The initial support is now seen at previous highs at 115.50, and the USD must stay above it for the short-term trend to remain bullish. Additionally, that level is also reinforced by the short-term uptrend line near the same price. 

The medium-term uptrend could be at the 50-day moving average (the purple line) at 114.00.

On the upside, it looks like the next target for bulls will likely be at 118.50, where December 2016/January 2017 highs are. A break above that resistance could quickly send the USD to the psychological 120 threshold.
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