USD/JPY technical analysis: Sideways churn continues with RSI flashing bullish signals

• USD/JPY is trapped in a falling channel on the daily chart. 
• The daily RSI is reporting a bullish pattern. 

USD/JPY has been restricted to the 108.80-107.80 trading range since June 4. Further, the pair is now trapped in a falling channel for almost two months.

As of writing, the upper edge of the falling channel is seen at 108.88 and the pair is trading at 108.53.

A breakout looks likely, as the widely followed 14-day relative strength index (RSI) is reporting a descending channel breakout - a bullish development.

That said, it all depends on what the US Federal Reserve says later today. The central bank is widely expected to lay the groundwork for a rate cut later this year.

A channel breakout could happen if the Fed sounds less dovish-than-expected, opening the doors to 110.00.

Daily chart

Trend: Neutral

Pivot levels