FX.co ★ Short-term bounce expected in USDJPY for January 16th, 2023.

Red lines- bearish channel

Yellow rectangles- oversold bottom by the RSI

Green line- oversold level of reversal in the RSI

USDJPY is trading around 128.53. The RSI is turning upwards from oversold levels. Every time the RSI reached the same levels, we saw price move higher for at least three sessions. Downside is limited and we expect price to bounce towards 130-131. Technically trend remains bearish as price is still inside the bearish channel and continues making lower lows and lower highs. Previous support and low at 129.56 is now our first bounce target and short-term resistance. Above that we expect price to continue towards 131.