USDJPY bounced off the key support we have been talking about in our past analysis. Price has confirmed the support trend line yet again. Price today is coming back down towards the support area of 108.70-108.60 for another test.
Green rectangle- support
Red line - support trend line
The red support trend line has been tested many times. So far price respects this support. If price however breaks below it, then we will have an important bearish signal. Falling below the red support trend line and the green rectangle, will be a sell signal that will imply price is heading towards 106. If price continues to respect the support above 108.70, then we should be patient to see if price manages to push above 109.70 resistance.
