USD strength is likely to resume at some stage - at least on a fundamental view. The most recent non-farm payrolls number may be the first of a series of stronger numbers after a patch of weakness. If that's the case, traders will start talking earlier rate hikes - and the USD should lift.
Here's the longer term USD story on the JPY chart:
After PM Abe's comments in December 2012 about a renewed determination to stimulate the Japanese economy, JPY weakness kicked in. Comments from US Fed (then) Chairman Bernanke in mid 2014 saw USD strength takeover, and the rise in USD/JPY continue. Note the period of prolonged sideways movement in early 2014 (dotted lines).
Now, here's the recent sideways move on the daily chart:
USD/JPY remains on the radar until a break of either 118.30 or 120.80. I'd find an upward break easier to trade, given my fundamental view.
