The pair has now comprehensively pushed through December highs and is trading at its highest since September 2008. As it increasingly looks bullish and historical levels disappear from the chart, I have reverted to using a weekly chart to illustrate just how strong the pair is looking. There has been an uptrend in place since October 2013 and this line held through the lows printed in July and August.
The line comes in at around ¥105.00 and any dips back into this trend line could potentially be used as an opportunity to buy. A trend line has also emerged on the upper end, drawn through 2013 highs, and seems to be coming into play again now. Together these two trend lines combine to form a rising wedge pattern.
A rising wedge is actually a bearish signal, and as the trend lines converge there is a risk a reversal will emerge. Essentially, this indicates the price momentum is weakening. The resistance currently lies at around ¥107.70. Having said that, the pair has only just nudged into overbought territory, with the RSI now at 72. As a result, there could be more room to move. Importantly for traders already in the position, the most logical step would be to trail stops and see how the price action reacts in coming days. A break through the ¥107.70 resistance could signal further gains.