USDJPY as we mentioned in previous posts, was trading right above the key support trend line at 108.70 and above the horizontal support of 108.50. Bears needed to break below this support area in order to regain control of the trend. But so far they were unable to do so and it seems now that bulls are ready to provide a new bullish signal as price is bouncing off the trend line.
Red rectangle -short-term resistance
Blue line - horizontal support
Green rectangle - support area
USDJPY has mostly been moving sideways for some time now between 109.70 and 108.50. This consolidation is in favor of the bulls as price continues to respect key support level of 108.50. With resistance at 109.70 bulls seem to make another turn higher. If Dollar strengthens again and bulls manage to break above 109.70, then we will have another bullish signal that will imply a new upward wave started towards 110.70-111.
