FX.co ★ USDJPY breaks out of bearish short-term channel.

Blue lines- bearish channel

Red line- bullish RSI divergence

Violet lines- Fibonacci retracement levels

USDJPY is trading around 132.82. As we explained in previous posts, USDJPY was very probable to produce a bounce higher as price stopped the decline at the 61.8% retracement level. Price is now trading above the bearish channel it was in. The warning by the RSI bullish divergence was spot on as price has now started making higher highs and higher lows. USDJPY has support at 131.70 and next resistance level is at 133.35.