USD/JPY Price Analysis: Bulls moving on on the 1990 trendline resistance

• USD/JPY is moving in on critical resistance and would be expected to falter if 115 holds.
• Bears will be looking for a significant correction in the coming days. 

USD/JPY has rallied with the yen unable to benefit from risk aversion of late because higher oil prices and higher bond yields are encouraging yen shorts to stick to the game plan. Yen shorts from the CFTC data (dated last Tuesday) and they have grown further. Additionally, the yen short in options is currently the biggest ever. 

This leaves the yen short position vulnerable to a squeeze and the following charts illustrate the technical bearish bias from a longer-term chart resistance point of view:

Weekly chart

The price has broken into fresh territory mid-week, the highest in four years. However, it is moving in on a resistance zone as illustrated above which likely means we will see a correction in due course. 

Monthly chart 

USD/JPY will be expected to struggle as it approaches the post-1990 downtrend which provides huge resistance. If the price can't punch through 115, it will be expected to falter.