USDJPY after reaching our target of 103 and a bit lower has reversed its trend and is bouncing. Now trading at 104 is confirming our warnings from our last post when we talked about being careful if bearish.
USDJPY could very well push higher towards 104.30 where we find the upper channel boundary. Momentum is bullish in the short-term, however with price still inside the bearish channel since July, we should not be surprised if price gets rejected at 104-104.30 and reverses lower. Traders need to be patient and cautious.