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USD/JPY had broken above the critical psychological level of 90.00 quite smoothly. Even though after the first break when the currency pair had gone as high as 90.24, there was a strong fall to 88.06 but the equally strong recovery had taken it to as high as 91.19.

On one hand the bullish sentiments are intact but recently there has been a loss of the momentum. From December 13, 2012 to January 5, 2013 the pair has been mainly finding support near the 5-day EMA but for past 3 weeks that trend has changed and there are frequent breaks of that support. The new trend of support has moved towards 22-day EMA.

There has been a resistance trend line coming into picture and the current USD/JPY price action is approaching that resistance line.