• USDJPY resumes uptrend, unlocks 3½-month high
• Short-term bias is positive; July’s barrier could pose a test

USDJPY broke into the 155.00 territory for the first time since July, reigniting optimism that the upleg which started in mid-September has more room to run.

That said, the pair seems to be facing an obstacle near the 155.20 level – the same zone that sparked a sharp downfall at the end of July. With the RSI and stochastic oscillator edging toward overbought territory, a potential slowdown or consolidation could be on the cards.  

Hence, for the bulls to maintain momentum, they'll need to decisively pierce through the 155.20 wall. Such a move could pave the way for the next target range around 158.50-159.00, where the upper boundary of the upward-sloping channel lies. From there, the 160.20 mark could be the next major hurdle.

Otherwise, a pullback could initially take a halt somewhere between the 61.8% Fibonacci retracement of the previous downleg at 153.40 and the 20-day exponential moving average (EMA) at 152.40. If the bears breach that floor, confirming a negative shift in market sentiment, the spotlight may immediately fall on the 50% Fibonacci mark of 150.75 and the 50- and 200-day EMAs. Further downside could see the pair test the 38.2% Fibonacci level at 148.11.

In summary, USDJPY is back in an uptrend, though for a continuous rally, the bulls must successfully close above the 155.20 barrier.