FX.co ★ USDJPY analysis for Tuesday August 16th, 2022.

Red line -resistance trend line

USDJPY has broken above a key downward sloping resistance trend line and is trading around 134.30. Price made a higher low at 132.57 and is starting making higher highs and higher lows. Breaking above the red trend line is an important bullish sign. It gives hopes to bulls that the sequence of higher highs and higher lows can continue. Next major resistance is at recent high of 135.45. A break above this level will confirm the bullish momentum and make the 131.75 low the most important support level. It is very important for bulls to hold above the red trend line in order to reclaim control of the trend. Failure to hold above 132.57 would be a bearish signal and will cancel any hopes for bulls.