USD/JPY Price Analysis: Bears cap the bulls ahead of key events

• USD/JPY bulls are attempting to break higher ahead of key events.
• The bears are committing to critical resistance so far.

USD/JPY is attempting to break out of a medium-term downtrend with prospects of a move up for the week ahead as we move into key events on the US calendar. The Yen traders had been wrong-footed by the Bank of Japan's surprise policy tweak last month and the recent hold on policy has left the pair able to trend up to test the daily trendline resistance as the following technical analysis will illustrate:

USD/JPY daily chart

The bulls have been moving in since the end of last week and we are on the verge of a breakout. However, there is still plenty of work to do from the bulls as we head over to key events 9n the calendar as the following analysis on the 4-hour chart shows:

USD/JPY H4 chart

The price action is building a bullish case but the resistance is key. At this moment in time, there is a lack of commitment form the bulls at the trendline resistance and the tests are feeble. Failures open risks fo a pull back as we head over to the US calendar events on Thursday.