USD/JPY Technical Analysis: Set-up favors an eventual bullish break through and a move towards mid-112.00s

   •  The pair extended its steady intraday climb through the mid-European session, albeit continued with its struggle to make it through the 112.00 round figure mark.

   •  The recent range-bound price action constituted towards the formation of a rectangular chart pattern on the 1-hourly chart, marking a pause in the recent bullish trend.

   •  The fact that the pair is holding comfortably above important daily moving averages - 50, 100 & 200-day SMA, support prospects for an eventual bullish breakout and additional gains.

   •  Oscillators on 4-hourly/daily charts maintained their bullish bias and have again started gaining positive traction on the 1-hourly chart, adding credence to the constructive outlook.

   •  Traders, however, are likely to wait for a sustained move beyond the mentioned handle before placing any aggressive bids for further appreciation towards 112.55-65 horizontal zone.

USD/JPY 1-hourly chart