After its break-out of the triangle formation in October 2016, it has meanwhile reached the first target at 111.55 and even advanced further to a fresh 10-month high to 118.60 area. The move was pretty steep and quick. A bit too steep for my taste. But, some consolidation followed and USDJPY has likely completed it as it retraced 38.20% of the whole move which is equal to the major fibonacci retracement level (!). In my opinion, USDJPY is now ready for another major upleg as it has broken out of the consolidation (channel) along with a break of the momentum resistance line. I see further upside potential to 125.80 (old high) and 131.80 (fibonacci trend extension). I would not be surprised if we see again a very steep and quick move.
Conclusion: Second major upleg ahead with upside to 125.80/131.80 (+15%).