Last week we burst above trendline resistance drawn off the mid-July top at 89.12 before stalling close to 86.00, quite close to where the prevailing downtrend in place since the beginning of May. The first trendline is now providing modest support while the major downtrend remains in place after being severely tested earlier this week and late last week.
At a minimum, USD/JPY bulls will want to see a close above the 84.54 level, the 21-day moving average, to offer them much comfort in their positions.
