FX.co ★ Technical analysis on USDJPY for December 28th, 2022.

Red lines- bearish channel

Blue line- bullish divergence

Green line- short-term support

USDJPY continues making higher highs and higher lows in the near term as price approaches 134. Price continues to respect the upward sloping green support trend line. This support is now found at 133 while price is now at 133.70. Price remains inside the medium-term downward sloping channel. A break below the green support trend line will signal that another move lower is starting. In this case we should expect a new lower low on a weekly basis towards 129-130. Upside potential in the near term is limited to a move towards the channel boundary at 135.20.