USD/JPY is trading at 104.28 above the minor uptrend line and near the major downtrend line. Its failure to approach and reach the 103.27 lower low signals that the sellers are exhausted and that the pair could turn to the upside, could increase in the short term.
An important upside movement will be confirmed by a valid breakout above the downtrend line. USD/JPY could develop a leg higher, swing higher if the price jumps and stabilizes above the downtrend line and maybe above 105.00 psychological level.
This scenario could signal that USD/JPY could increase within the up channel's body. You should know that the bullish scenario will be invalidated by a drop under the minor uptrend line.
- USD/JPY Trading Conclusion
We could buy from above 105.00 level and we can use 107.00 as an important upside target, obstacle. An increase beyond 105 will signal an up reversal and a potentially strong uptrend in the short to medium term.
