Blue lines- bullish channel
USDJPY has made a remarkable recovery after the sell off on September 22, from 145.86 to 140. Price has steadily recovered to 144.70 and has formed a bullish channel. As long as price holds recent lows at 144.10 I expect USDJPY to see recent highs at 145.86 and why not break above them. So far price is holding above the lower channel boundary. This is a key short-term support. A break below 144.10 will open the way for a move lower towards 142.50. Resistance is at 144.80. A break above this level is expected to push price towards 145-145.50. This is the next major resistance. So far price continues making higher highs and higher lows in the 1 hour chart. Inability to break above 145.86 will provide a lower high and a rejection would be a bearish signal. Traders need to be very cautious.