USD/JPY: Goldman Sachs thinks pair has potential to climb towards 123.24

According to Goldman Sachs forex strategists, the USD/JPY is about to break the top of a triangle formation, and they note upside potential for a test of 123.24.

"There seems to be an ABCDE figure in place, which suggests that the market is ready to follow a trend."

"The next upward level is the 61.8% of the decline between 10 and 26 March to 120.62. Above this point, the strongest resistance zone is between 121.85 and 122.04, at the tops of reached on 8 December and 10 March."

"In terms of classical technical analysis, an extrapolation of the break of the triangle implies a potential upside climb towards 123.24."