USD/JPY Downside Seems Over!

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USD/JPY is trading at 110.27 at the moment of writing. The buyers are very strong in the short term. They pushed the price far above the downtrend line which represented a dynamic resistance, an upside obstacle.

The pair has escaped from the down channel pattern signaling an upside reversal. Technically, we cannot exclude a temporary decline. USD/JPY could come back down to test and retest the broken downtrend line before jumping higher.

Forecast!

The breakout through the downtrend line signaled an upwards movement. Still, maybe it's risky to buy it here as the price could decrease a little to retest the broken line before resuming its upside movement.

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

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