It is interesting how USD/JPY waited until after the end of September to reach 110.00, perhaps suggesting there were large option expiries at month's end that counterparties may have been protecting with orders to sell USD/JPY below the big figure.
Regardless, the US dollar moved sharply higher from a 102 handle in early August and knocked out 110.00 today, a rapid move that some would herald as a validation of Abenomics and Japan's efforts to create inflation to weaken the yen. This Weekly chart shows the swift run-up over recent weeks and we can view 110.20 as a retracement extension exhaustion level.
The Monthly chart below also depicts the recent move.
Additional upside targets are 110.20, 111.60, and 112.29.
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