A few days ago we warned bears that a bounce in USDJPY was imminent. Price moved towards the upper channel boundary where we noted that we find key short-term resistance and bulls should not be overconfident.
USDJPY remains inside the bearish channel making lower lows and lower highs. Near the key channel resistance we prefer to turn bearish again. As long as price is below 104.30 we are bearish again looking for a move towards the lower channel boundary. If the channel is broken upwards, then we expect price to continue higher towards 106.