Ella 
On July 17, 2023, USD/JPY was trading at 139.90. Our updated headline reads “USD/JPY remains at risk to the downside”. The bank notes: “Both the uptrend line (connecting February low and 137.23 low) and the bottom of the daily Ichimoku Kinko cloud are around 138.50.
USD/JPY then fell to a low of 138.05. Although USD/JPY fell below the trendline support, it did not break below the bottom of the daily Ichimoku balance cloud chart. USD/JPY’s decline did not last long before USD/JPY bounced back and broke the strong resistance at 141.95 (USD/JPY rose to a high of 143.89 last week). USD/JPY appears to be building up momentum and is likely to be biased to the upside from now on. However, the July high around 145.05 constitutes a strong resistance that may not be easily broken. Overall, only a break above 140.55 (where the 55-day EMA is currently located) would suggest that the uptrend has weakened.
