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

USD/JPY has risen up in a channel since bottoming out at the September 16 low. 

The rising peaks and troughs, suggest the pair might now be in a short-term uptrend, which favors long holders. 

USD/JPY 4-hour Chart 

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

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

A decisive break below the lower channel line, would negate the bullish bias. 

The pair is in a medium-term downtrend suggesting a risk of a resumption lower, however, those risks are balanced by its long-term uptrend.