Blue lines- bullish channel
Red lines- trading ranges
USDJPY is trading around 138-139 inside a short-term bullish channel created back at the beginning of August. USDJPY continues making higher highs and higher lows and current price action suggests that it is very possible to see USDJPY make new 2022 highs above 140. USDJPY is forming again a short-term trading range as shown above in red lines. With price still inside the channel, the trading range is expected to be broken to the upside with USDJPY testing the 2022 highs and with increased chances of breaking to new ones. Support is at 138.30 and next at 137.90. As long as these support levels hold, we expect USDJPY to push above 140 in the near term.