Get ready for breakout on USD/JPY

We have a symmetrical triangle pattern on the daily chart. triangle resistance is 113.40. I expect a bullish break soon as dips to 5-DMA (red line) today found fresh bids. The rebound from the low of 112.73 also marks failure on the part of the bears to keep the spot below 112.93 (June 29 high).

The 2-year treasury yield rose to nearly 9-year high of 1.426%. The yield curve has steepened as well.

A daily close above 113.40 would clear way for a re-test of 114.36 (May high), Caution is advised thereafter as the RSI would be overbought by then.

Daily chart

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