Technical outlook:
USDJPY has reversed sharply from 115.60-70 zone as expected and discussed early this week. The currency pair printed 114.20 low on Wednesday before finding some support. It is seen to be trading close to 114.50 mark at the time of writing and is expected to produce a counter trend rally at least up to 114.80 levels. Watch out for a turn lower threafter.
USDJPY might pullback further toward 115.00-20 zone as well before bears are back in control. Please note that 115.20 is also the past support turned resistance zone as marked on the 4H chart here. Ideally, prices should stay below 115..60-70 levels going forward and drag lower towards 112.50 and 109.00 in the next few trading sessions.
USDJPY has been successful in carving a potential Right Shoulder around 115.60 as discussed and projected over the last week. The zone is also backside of the support turned resistance trend line. If the above structure holds well, a potential Head and shoulder reversal is already underway towards 112.50 levels in the near term.
Trading plan:
Potential drop to 112.50 and 109.00 against 117.00
Good luck!
