FX.co ★ USDJPY vulnerable to a pull back below 103

USDJPY has bounced since the beginning of January from 102.60 towards the upper channel boundary resistance at 104.40. Price got rejected and ever since it is hovering right below the channel resistance.

Red lines - bearish channel

USDJPY continues to trade inside the bearish channel. Price continues to make lower lows and lower highs staying below the upper channel boundary. We remain pessimistic as long as price is below the upper channel boundary at 103.90-104. We expect price to move lower towards 102.50. Only a break and weekly close above 104 would cancel the short-term bearish view.