USD/JPY traded in a consolidative mode yesterday, gyrating around the 111.00 key level. Given that the pair hovers around that area and we didn’t see a decisive break of that zone, I prefer to lower a bit my first support line to 110.85 (S1). Following the break above the psychological figure of 110.00 (S2) the short-term picture has turned positive, in my view. A clear break above the 112.00 (R1) level could initially aim for the 112.70 (R2) area and the downtrend line taken from the highs of the 10th of February. Our short-term oscillators though, show signs that the retreat may continue for a while before the next leg higher. The RSI found resistance above its 70 line and declined, while the MACD, shows signs of topping. Switching to the daily chart, I still see a longer-term downtrend, but given that there is positive divergence between our daily oscillators and the price action, I would switch to flat for now as far as the medium-term picture is concerned.