USDJPY has held above the support area of 109.40-109.50 and is now moving higher. Price so far has respected the upward sloping red trend line and as we said in previous posts, for bears to regain control of the trend, first they must break below this trend line.
Blue line- horizontal support
Red rectangle -short-term resistance
USDJPY is moving back above the red rectangle resistance area confirming the initial break out above it. Price back tested the break out area and is now forming higher highs and higher lows pushing price towards 110. Our first upside target remains at 110.70 and as long as we trade above 109.60, this will remain our most probable scenario.
