FX.co ★ Trend line analysis on USDJPY

In all our recent posts we made it very clear how important the upward sloping trend line support is. The importance of this trend line can easily be seen as price is trading around it and bulls fight a big battle against bears without any violation of the trend line. Bulls continue to have the upper hand as price remains above the trend line.

Red line - support

Green rectangle - support

Blue line- horizontal support

USDJPY continues to respect the support green area and the red upward sloping trend line. The horizontal support shown by the blue line also remains intact. Bears need to break below 108.50 in order to reclaim control of the short-term trend. The longer time price spends on top of the trend line support, the higher the chances of a strong upward move. A break above the 109.70 will give as first target the 110.70 level and next at 112.