USDJPY is trading at 103.88 very close to the upper channel boundary. USDJPY has been trading inside this bearish channel since June and traders should into serious consideration any break out that might occur or any rejection.

Last week price came very close to the resistance and got rejected. As long as price is below the upper channel boundary we remain bearish looking for a rejection and reversal around 104 targeting to new lows below 102.59. If however resistance is broken, we turn neutral if not bullish. If price breaks below 103.50 then the rejection and bearish scenario will be the most probable to succeed. So traders need to keep a close eye on the 103.50 support and the 104.12 resistance.