USDJPY remains inside bullish channel despite end of the week pull back

USDJPY is holding above 108 respecting the medium-term bullish channel since the end of August. Price should continue higher as long as we trade above last week's lows. This is still considered as a buying opportunity and a corrective pull back inside a bullish trend.

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Green lines - bullish channel

Blue line - long-term resistance trend line

USDJPY is bouncing off the lower channel boundary. Support is key at 108 area and as long as price is above we remain bullish looking for a move closer to the long-term resistance trend line at 110.50. Important resistance level that must be broken in order to push closer to 110.50 is at 109.10.

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Green rectangle - major support area

Green line - support trend line

Red arrows - reversal points in time inside the green rectangle

Blue line - long-term resistance

USDJPY has formed a major low and important support area around 104. Price as expected has moved towards 108.50 since then and back at that time we were targeting the blue downward sloping trend line. We continue to see the blue trend line as the most probable target. Price continues to make higher highs and higher lows. This week's low is very important for bulls as they do not want to see a weekly close below it, in order to remain in control of the short-term trend.

The material has been provided by InstaForex Company - www.instaforex.com