USDJPY is making higher highs and higher lows. Trend is bullish as price is moving inside an upward sloping channel. Price is at 109.66 and around 110 we have a major resistance trend line coming from 117.80-118 area back in 2016.
This resistance trend line has been tested twice so far and price moved lower after getting rejected. Another rejection should not be ruled out. If however price breaks above this trend line then we could be talking about a very important bullish signal.
If on the other hand price breaks out of the bullish channel, then we should expect a retracement of the rise from 103. Short-term channel support is found at 108.60-108.20. As long as price is above this level, short-term trend will remain bullish and the break above 110 possible. If support fails to hold, then we should expect a pull back towards 107 at least.
