Red lines- bullish channel
USDJPY is trading around 143.70 making new short-term higher highs. Price continues to respect the upward sloping channel it is in since the beginning of August. Technically trend remains bullish as we have been saying for the last few weeks. Short-term support is at 142.90 where we also find the lower channel boundary. Price is making higher highs and higher lows since the 142.60 low. We warned in previous posts the bearish RSI divergence. A major pull back is justified, but so far there is no sign of a coming reversal. Traders hold a waiting stance ahead of tomorrow's FOMC. Volatility is expected to spike tomorrow and we do not expect to see much action until then.