USD/JPY Bounces Off Short-Term Uptrend Line

USD/JPY (daily chart as of February 20, 2014) has been under pressure below 102.85 (January 13 low) and trading in a zigzag pattern against the daily EMA 100 for three weeks or so. It appears that the pair is consolidating after its slide from the high of 105.45, and has managed to maintain a short-term uptrend line connecting the February 4 and 16 lows.

The yen slid earlier this week after the Bank of Japan boosted its lending programs and said it will continue its expansionary monetary policy to stamp out deflation. Today, the U.S. dollar once again climbed higher against the yen, right from the mentioned short-term uptrend line, and is poised to retest the daily EMA 50 and potentially the major 102.85 resistance.

Support levels below:

1st support: short-term uptrend line

2nd support: 100.75 (February 4 low)

3rd support: daily EMA 200

Resistance levels above:

1st resistance: daily EMA 50

2nd resistance: 102.85 (January 13 low)

3rd resistance: 103.40 (January 28 high)