USD/JPY Price Analysis: Stuck in an expanding descending channel

• USD/JPY's 15-minute chart shows a bearish channel. 
• A breakout would open the doors for a re-test of Wednesday's high. 

USD/JPY is trapped in an expanding descending channel, as seen on the 15-minute chart. 

A convincing move above the channel hurdle, currently at 105.57, would confirm the breakout and signal a resumption of the rally from the Aug. 5 low of 105.32. On the higher side, key resistance is seen at 105.68 – the peak of the descending channel. 

On the downside, support is seen at 105.46 (channel low), which, if breached, would expose the Aug. 5 low of 105.32. At press time, the pair is trading at 105.56. 

A breakout looks likely with the daily chart flashing early signs of a bullish reversal. The pair carved out a big bullish engulfing candle on July 31, terminating the downtrend from the March 24 high of 111.71. 

15-min chart

Trend: Bullish

Technical levels