USD/JPY Upside Move Pauses at 50% Fibonacci Retracement Level

USD/JPY Daily Chart (as of 6/25/2013):

The pair broke above a short-term downtrend on 6/20. The recent strong upside move paused at the 50% Fib retracement level at around 98.70, from the 5/22 high of 103.72 down to the 6/13 low of 93.78. We had five bullish candlesticks from 6/17 to 6/21 trading sessions – an inverted hammer formed on 6/17 at around 94.40/50, also the high of 2/11 and 2/25, and then a “three white soldiers” pattern followed by another small bullish candlestick. It is a bullish reversal candlestick pattern indicating a short-term trend change.

The candlestick of 6/20 was a bullish candle with a longer upper shadow that shows resistance at the session high of 98.30. A doji yesterday on 6/24 had a longer upper shadow showing a possible pause and short-term resistance at 98.70, which is also the mentioned 50% Fib retracement level. If the price breaks above the 98.30/70 resistance area, upside momentum may be continued and may test 100.00, around the 61.8% Fib retracement level and the high of 4/11. On the downside, if the price respects the above resistance area, the support levels are at 96.80 (6/21 low), and then 95.70 (6/18 high). The RSI on the daily chart is moving up and testing the 50 level.