USDJPY earlier today tested the lower channel boundary at 130-129.90. As we mentioned in our previous analysis, in order to get a reversal signal, USDJPY will need to push below the channel boundary. Price reached support earlier today and bounced higher respecting the channel boundaries.
With price bouncing from the channel support, we can expect price to move to new higher highs over the next couple of sessions. Resistance is at 131.30. Breaking above this level will push price higher towards 132. The RSI provides some bearish divergence signals, but price has not confirmed a reversal yet. Bulls remain in control of the trend.
