USDJPY continues to respect the key support trend line coming from 107. Price has been making lower lows and lower highs since the reversal from 110.30, but there are some indications that we might soon see a reversal to the upside.
Blue rectangles -lower lows
Black lines - bullish divergence
USDJPY is trading around 109.30. The area between current levels and 109 is key support. At current levels we prefer to be bullish as long as price is above 109, risking just 30-40 pips. Price made recently a new lower low but as can be seen in the 1 hour chart, the RSI did not follow price and did not make a lower low. This is just an indication and not a reversal signal. I expect price to reverse to the upside once again and USDJPY to respect the 109.30-109 support zone. I can see USDJPY reaching 110.30 again.
