USDJPY is trading around 109 above the support trend line and horizontal support around 108.50. Trend is still unclear. Price is moving inside the trading range of 108.50- 109.70. A sign of weakness would be if price broke below the trend line support, but it would only be confirmed if price breaks below the major support at 108.50.
Red line - trend line support
Red rectangle- major resistance
Green rectangle- major support
Price is very close to breaking below the red support trend line. However this will not be an important sell signal if it is not followed by a decline below the blue horizontal support. On the other hand, bulls want to see price bounce off the red support trend line and continue higher towards the horizontal resistance and double top around 109.70. Breaking above this resistance would be a bullish sign.
