USD/JPY technical analysis: Contracting triangle breakout may pave way for 110.00

• USD/JPY has charted a contracting triangle on the hourly chart. 
• Triangle breakout would signal a continuation of the recovery from recent lows near 109.00. 

USD/JPY pair has created a contracting triangle on the hourly chart. 

A move above 109.68 would confirm triangle breakout or resumption of the corrective bounce from the recent low of 109.02 and allow a test of supply around the psychological resistance of 110.00. 

The bullish divergence of the 4-hour chart relative strength index (RSI) also indicates scope for a rise to 110.00. 

The bullish case, however, would weaken if the contracting triangle is breached to the downside. That, however, looks unlikely with the equities flashing green. 

Hourly chart

4-hour chart

Trend: Bullish

Pivot points