In our recent posts about USDJPY we focused on the short-term as price continued to respect support at 109 and as price started making again higher highs and higher lows. Although price reached 110.20, it is now trading at 109.60 in what we believe to be another higher low.
USDJPY is still above two key long-term resistance trend lines. One trend line is now at 109.10 and the other at 108.55. Staying above these trend lines on a weekly basis would be a bullish sign. If bulls manage to hold above the 108.50-109 support area, we could next see a push higher towards 111-112. Failure to hold above the trend lines will open the way for a decline towards 106 at least.