USD/JPY Price Forecast: Recovers back inside rising channel
|- USD/JPY has returned to trade back inside its rising channel after a false breakdown.
- The pair is in a short-term and long-term uptrend suggesting a bias towards the upside.
USD/JPY has recovered back inside its rising channel after a temporary downside break on September 24.
The pair has broken above the 50, 100 and 200-period Simple Moving Averages (SMA) and is in an established short-term uptrend.
USD/JPY 4-hour Chart
Given it is a principle of technical analysis that “the trend is your friend” the odds favor a continuation higher.
Momentum as measured by the Relative Strength Index (RSI) is confirming the bullish bias, although it is easing somewhat.
A break above the current day’s high of 145.20 would suggest a continuation of the trend with tentative targets lying at 145.50 and finally in a bullish case 146.00.
The medium-term trend was bearish but it is now unclear and could arguably be bullish. USD/JPY remains in a long-term uptrend.
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