USDJPY Analysis – healthy uptrend

Time to deal with our previous analysis of the USDJPY, which was mentioned here on the 14^th of September. Back in that day, the price was around 111.8 and we saw a nice buying opportunity. In our piece about this pair we concluded the overall situation in a following way:

“All that is very positive and brings us a buy signal on this instrument. „

Now we are 40 pips higher but in the meantime, we were even 60. That was a good call as the USDJPY is in a healthy uptrend and is making new higher highs and lows. Currently, we do have a small correction, which is probably aiming the up trendline (green). Slightly above this line, we have a horizontal support (orange) and slightly below, we have a correction equality pattern (grey). Maybe the green line will be chosen as a compromise and that will be the place, where the price will reverse? We will see.

For now, the short-term sentiment is negative and the long-term approach is still positive. Any bullish formation close to the green line will be a very good opportunity to buy.