In our last analysis on USDJPY when price was just above the upward sloping support trend line at 109.30, we preferred to be bullish as price has been supported and the risk was low, relative to the upside potential. Price has held the support at 109-109.30 area and is now making higher highs and higher lows.
Red line - support trend line
Blue line - horizontal support
USDJPY is trading close to 109.70 having broken above the recent high of 109.55. Short-term trend is changing to bullish as price is starting to make higher highs and higher lows. We remain bullish as long as price remains above the red support trend line.
USDJPY has support at 109.50. Resistance is at 109.90. If bulls manage to recapture 110, then we could see this upside move continue to new short-term highs towards 110-50-111. We remain optimistic as long as price continues to follow this pattern.