USDJPY is in a bullish short-term trend. Price is making higher highs and higher lows. There is no sign of a reversal as bulls are in full control of the short-term trend. However traders need to take a look at the bigger picture as price is approaching major resistance levels.
USDJPY continues to trade below the blue downward sloping resistance trend line that comes down from 118 the year 2017. In the weekly chart above we see the confirmed blue trend line resistance that was tested two more times but price got rejected. This will be the third time? Will it be the lucky one? One thing is for sure, bulls need to be cautious as this is serious resistance. A rejection here could be the start of another move lower that brings price below 103. On the other hand a break above the blue trend line will be big news. Breaking and staying above the blue trend line resistance will give us 118 as first target area and why not a move back to 125. First we need to break above 110.
