• USD/JPY has resumed its short-term uptrend after a pullback. 
• The pair could rise up to match the July 3 high at 161.95. 

USD/JPY has continued recovering after finding support at 160.26, the July 8 low and bouncing. The pair has since established a new sequence of higher highs and higher lows on the 4-hour chart, indicative of the start of a short-term uptrend. Given “the trend is your friend” the odds now favor a continuation higher. 

USD/JPY 4-hour Chart 

USD/JPY is also in an uptrend on an intermediate and long-term time frame, further supporting a bullish outlook. 

A break above 161.61 would signify more upside to the next target at 161.95 (the July 3 high). A break above that level would establish a higher high and provide further bullish confirmation. Such a move would probably reach the 162.70s initially, at the top of the rising channel, where it would again meet resistance.