FX.co ★ USDJPY challenges once again major trend line support

USDJPY is trading at 109.23 and is challenging a major support trend line. Price has tested this trend line in the recent past several times. Every time price bounced higher. Breaking below 109.20-109 price level will be a bearish sign.

Blue line - horizontal support

USDJPY is at a major support level. Breaking below this trend line will open the way for a move towards the blue horizontal support at 108.50 area. So far price bounced strongly each time the trend line was touched. This is another opportunity for short-term traders to try long positions with a tight stop. Overall, price is making higher highs and higher lows after bottoming at 107.50-107. Bulls do not want to see this red trend line broken. It will increase chances that the entire upward move from 107.50 area was just a counter trend bounce.