USD/JPY Price Forecast: Higher Channeling

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

USD/JPY has been rising in a channel since reaching its lowest level since September 16.

The rising highs and lows suggest that the pair may now be in a short-term uptrend, which favors long-term holders.

USD/JPY 4 Hour Chart

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

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

A decisive break below the lower channel line would cancel the uptrend.

The pair is in a medium-term downtrend, which suggests a lower risk of a retracement, however, these risks are balanced by the long-term uptrend.