FX.co ★ USDJPY challenges major resistance trend line

USDJPY has bounced back towards the 110 resistance area. Last time we were at current levels, price got rejected once again at the downward sloping trend line and pulled back towards 108.20. Will we see another rejection?

This trend line resistance has been confirmed several times before that it is an important resistance level. Price is here again. A rejection now could lead to a decline below 108. That is why I prefer to be short as long as price is below the trend line and below 110.30. I would be cautious of the bullish side and wait to see if a new high above 110.30 occurs, will the oscillators provide a new higher high or will we see a bearish divergence? For now I focus on the bearish scenario.