USD/JPY has decreased after failing to approach and reach the ascending channel's upside line. Now it has come back down to retest the 110.87 level (resistance has turned into support).
Staying above this level could signal that USD/JPY could develop a new leg higher soon. The outlook is bullish as long as the pair is located above the uptrend line. The drop could be only a temporary one.
Conclusion!
A temporary decline was somehow expected after the last upside momentum. The current drop could help us to catch a new upside movement. USD/JPY could increase again as long as it stays above the 110.87 level. The upside target stands at 111.65 previous high.
