USD/JPY Price Analysis: Off session highs, stuck in a narrowing price range

• USD/JPY has charted a narrowing price range over the last 48 trading hours. 
• A close above Monday's high is needed to confirm a range breakout.

USD/JPY is currently trading at 106.34, having hit a session high of 107.19 an hour ago. 

While the pair has pulled back from session highs, it is still reporting a 0.50% gain on the day. 

More importantly, the pair has so far traded well within Monday's trading range of 107.57 to 105.15, which fell within Friday's high and low of 108.50 to 104.50, respectively. 

Essentially, the spot is trapped in a narrowing price range. A breakout above 107.57 (Monday's high), if confirmed, would imply a continuation of the rally from recent lows near 101 and open the doors to the psychological hurdle of 110.00. On the way higher, the pair could encounter resistance at 108.50 (Friday's high), 

Alternatively, a close below 105.15 would imply a range breakdown would shift risk in favor of a re-test of the recent low of 101.18 (March 9 low). 

Daily chart

Trend: Neutral

Technical levels