USD/JPY Price Forecast: Channeling higher

USD/JPY is channeling higher in a short-term uptrend.
It is likely to extend, although the medium-term bear trend risks pushing it lower again.

Joaquin Monfort FXStreet

USD/JPY has risen up in a channel since bottoming out at the September 16 low.

The rising peaks and troughs, suggest the pair might now be in a short-term uptrend, which favors long holders.

USD/JPY 4-hour Chart

Since “the trend is your friend” the short-term outlook, therefore, is mildly bullish.

A break above 144.68 (September 24 high) would provide confirmation of more upside, to a tentative target at 145.00, then 145.50 and finally in a bullish case 146.00.

A decisive break below the lower channel line, would negate the bullish bias.

The pair is in a medium-term downtrend suggesting a risk of a resumption lower, however, those risks are balanced by its long-term uptrend.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

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