So far we have been calling for a possible reversal in USDJPY and a move towards 106. However price has not confirmed the bearish scenario because it has not broken below the key support trend line coming from 102 and is now at 108.70.
Green rectangle- resistance
USDJPY is respecting the support trend line. Our bearish scenario towards 106 would get activated on a break below the red trend line. So far price shows signs of strength and with the current upward move towards the green rectangle resistance, there are increased chances now that 110.70 could be challenged over the next few sessions. Support is key at 108.70 and bears will need to break below this level in order to reclaim control of the short-term trend.
