USDJPY advances for five consecutive days

The USDJPY pair has been bid each day this week, and it was up 0.30% during Friday's US session, seen at around 105.70. It is now up nearly 200 pips since Monday's lows.

It looks like investors are closing their short positions on the USD as the Fed announced recently it is not ready to provide more stimulus. The market had been positioned for more easing; therefore, some re-pricing is currently going on.

The pair managed to rise above the stronger resistance of previous lows, which was near 150.20/30. Currently, that is the key support, and as long as the greenback remains above that level, the short-term outlook seems bullish.

If this support is broken to the downside again, the pair could revisit the 105.00 area.

Alternatively, the strong resistance should be at 106.00, and if bulls the greenback above this zone, the pair might rally toward previous highs of 106.50.

The US dollar seems overbought on short time-frames. Therefore the current rally might be over soon. 
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