The USD/JPY pair found temporary support at the 113.48 immediate low and now it moves somehow sideways. It's trading at 113.83 level and it seems undecided in the short term. Still, the bias remains bearish as the price stands below the downtrend line.
Fundamentally, the Yen received a helping hand from the BOJ Core CPI in the early morning. The indicator reported a 0.9% growth versus 0.7% expected. As you already know, the USD depreciated a little as the US Flash Services PMI and Flash Manufacturing PMI came in worse than expected yesterday. Today, the US CB Consumer Confidence is expected to drop from 115.8 to 111.4 points. A deeper drop could weaken the greenback.
In the short term, USD/JPY could move sideways. A new lower low, a bearish closure below the 113.48 could open the door for a deeper drop. The bearish outlook remains intact as long as it stays under the downtrend line and below the descending pitchfork's upper median line (UML).
Only a valid breakout above these upside obstacles could invalidate a larger downside movement and could bring new long opportunities.
False breakouts above the near-term resistance levels could bring new short signals. Also, a sideways movement followed by a valid breakdown below 113.48 could activate a deeper drop towards the median line (ML).