USD/JPY Price Analysis: The pair is now back in line after a brief test below 107.00

• USD/JPY trades 0.37% higher on Wednesday and resumes its consolidation.
• The pair is now testing a previously broken trendline.

USD/JPY 4-hour chart

USD/JPY is trading higher in the session despite the dollar struggling against most of its major counterparts. The pair usually tracks the major bourses around the world but recently there has been a disconnect but today the S&P and Dow are trading higher but the Nasdaq is lower on the session. 

Looking closer at the chart, the key feature is the breakout and retest of the black downward sloping trendline. This could indicate that the pair might be on the move higher. If this is the case the purple resistance at 107.40 could be a key factor. The price has bounced off the zone three times already. On the downside, the green level at 106.68 is the next support area. This is now a key consolidation and a break in either direction could help us determine the future path of the pair. 

Looking at the indicators, they are looking pretty mixed. The Relative Strength Index is right at the 50 level as lacks any clear direction. The MACD histogram is red but sloping like it could break into the green. The MACD signal lines are below the mid-point which indicates that the price is still in a downtrend. 

Additional levels