The USD/JPY held above a key support zone between 79.50 and 79.70. The daily chart shows the significance of this zone going back to May 2011. We are also trading in a declining channel, so the bullish outlook from this zone should first be limited in consideration of the prevailing downtrend. But the current extends beyond the channel, we can be in a bullish continuation of the rally from 76.03 to 84.17. The 4H chart shows that the rally from 79.62 to 80.30 was strong (an engulfing candle) and occurred after the US ISM Manufacturing PMI for April came out. It was better than expected, chipping away at QE prospects ... (full story)