FX.co ★ USD/JPY: upside continuation or larger drop?

USD/JPY Up Channel!

The USD/JPY pair increased in the short term after ending its strong drop. Now, it is trading at 135.24 at the time of writing. The price action developed an up-channel pattern, a flag formation that could bring a downside continuation.

As you already know from my analyses, 135.58 represented an upside obstacle in the past. So, this level and the channel's upside line are seen as upside obstacles. On the other hand, the channel's downside line represents a downside obstacle. I'll wait for the rate to escape from this pattern before buying or selling.

USD/JPY Trading Conclusion!

Jumping and stabilizing above the 135.58 and above the channel's upside line activates a potential growth towards the 136.68 higher high.

Staying below the upside obstacles and dropping below the minor uptrend line (channel's downside line) validates more declines.