We recently noted that USD/JPY was rebounding towards a falling channel resistance. Indeed price came up to this resistance area. We noted 106.30 as the start of resistance, and price came up to 107 before retreating. $USDJPY 4H Chart (click to enlarge) Possible Breakout?- Looking at the 4H chart, it looks like the overall market is still bearish, but the momentum has flattened.- Price action flattened a bit as well when it broke above the 200-day simple moving average (SMA). - There are 2 events that might suggest a bullish reversal. 1) If price pushes above 107.00.2) If price holds above 105.50. - Also, monitor the RSI. If it holds above 40 and rises, we could be looking at a bullish reversal.- In this scenario, there is upside for 108.00 - 108.50.- Otherwise, a break below 105.50 could lead to downside to 104, with prospect of further downside towards 99-100.