FX.co ★ Is USDJPY going to turn downwards?

Red lines- bullish channel

Green line- horizontal support

Technically USDJPY remains in a short-term bullish trend. Price continues making higher highs and higher lows. So far there is no confirmed reversal signal. In the near term price has reached overbought levels. A pull back towards 136-135.50 is justified. A back test of the green support, which was previously resistance, is justified and likely. With the RSI turning lower from overbought levels, price could very well test the lower channel boundary at 136-135.80. In the next two sessions it is very probable for USDJPY to move lower towards that support area.