FX.co ★ USDJPY breaks out of bearish channel

USDJPY is now trading above the upper bearish channel boundary at 104.37. Short-term trend is showing reversal signs. Price has broken the channel it was in since June and this is an important signal.

Support is found at recent lows at 103.30. Staying above the bearish channel and the 103.30 level is key for the continuation of the bounce. Resistance is found next at 105.60. USDJPY has just started a new sequence of higher highs and higher lows. If this sequence continues, we could see USDJPY reach 106 soon. With current market conditions I prefer to be neutral if not bullish, but of course not bearish.