USD/JPY is movings sideways according to the H1 chart. A valid breakdown below the 109.32 could signal a corrective phase in the short term. The pair dropped again as the USDX decreased a little today. We should wait for a confirmation before we go short on USD/JPY.
If USDX makes another low and drop below 101.08, USD/JPY could develop a correction. If the USD index makes another high, it will jump above the 103.00 psychological level and resume the upside movement.
USD/JPY could drop if the double top pattern is confirmed. MACD is signaling a bearish divergence after the price has failed to reach and retest the ascending channel's upside line.
You should know that the perspective remains bullish as long as the price is trading within the ascending channel, a valid breakdown from this pattern will open the door for a further drop in the short term.
I've drawn a minor descending pitchfork (dark blue) hoping that I'll catch a downside movement. The price is trying to retest the upper median line (UML), confirming it as a dynamic resistance.
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USD/JPY has registered only a false breakout above the 111.36 former high and above the upper median line (UML), but only a valid breakdown below the downside line, uptrend line, and below the 109.32 level will give us a chance to open a short position on this pair. The next downside target is seen at the uptrend line, the price could be attracted by the median line (ML) if we have a valid breakdown from this pattern.
A potential correction may occur in case of a valid breakout above the upper median line (UML) and above the 111.36 level. You can go long if the price makes another high and if it stays within the ascending channel.
