FX.co ★ Trading plan for USDJPY

We remain bearish USDJPY as price remains below the key long-term downward sloping trend line resistance. Price has made another lower high and shows rejection signs at the 106.30 area. If this price action is combined with a break below short-term support, then we should expect another move lower towards 104.

Pink line - resistance

With resistance confirmed at 106-106.30 area, we keep a close eye on short-term support at 105.90 and next at 105.35. Bulls need to break below these two key support levels in order to push lower towards 104.