It recovers back inside the ascending channel

• USD/JPY is back to trading inside its ascending channel after a false breakout.
• The pair is in a short-term and long-term uptrend, suggesting an uptrend.

USD/JPY has returned to its ascending channel after a temporary bearish pause on September 24th.

The pair has crossed the 50, 100 and 200 period simple moving averages (SMA) and is in a short-term uptrend.

USD/JPY 4 Hour Chart

Given that it is a tenet of technical analysis that “the trend is your friend,” the odds favor a higher continuation.

Momentum as measured by the Relative Strength Index (RSI) confirms the uptrend, although it is diminishing somewhat.

A break above the current day’s high of 145.20 would suggest a continuation of the trend, with tentative targets located at 145.50 and eventually a bullish case of 146.00.

The medium-term trend has been bearish, but is now unclear and may be bullish. USD/JPY remains in a long-term uptrend.