USD/JPY Poised to Break Key 102.85 Resistance

USD/JPY (daily chart as of May 2, 2014) has managed to trade higher since April 14 from the lower border of a large triangle trading range (line 4 on chart), but has stalled below key 102.85 for more than ten trading sessions.

102.85 is a key level to watch. Price has tended to form a cluster below 102.85 before overshooting it (three red shadows on chart). Technically, the pair has not cleared 102.85 since February, with price returning back below 102.85 after failed breaks.

Currently, price appears poised to break above 102.85 once again to test the upper border of the triangle range (line 3). If it does not return back to below 102.85, more upside movement may be expected to test the high of 104.10, and then potentially the resistance uptrend line (line 2).

The dollar has strengthened as US payrolls expanded by the most in two years, with the unemployment rate at 6.3%. Nonfarm payrolls added 288K in April, compared with a forecast of 210K.

Support levels below:
1st support: support uptrend line 4
2nd support: daily EMA 200
3rd support: 100.60/75 (multiple lows and highs)

Resistance levels above:
1st resistance: 102.70/85 (key support/resistance)
2nd resistance: medium-term downtrend line 3
3rd resistance: resistance uptrend line 2