Technical outlook:
USDJPY has been consolidating within a triangle between 114.70 and 115.70 a seen on the 4H chart here. It could be into its last leg within the pattern and find resistance around 115.70-116.00 zone as marked. Ideally prices would stay below 116.35-50 levels, which is projected as a potential double top.
USDJPY had rallied through 116.35 highs on January 04, 2022 and since then it has carved a series of down swings. The primary down swing was between 116.35 and 113.50. It was retraced completely remaining shy by only a pip, carving a double top. Thereafter, bears have managed to drag a secondary downswing between 116.34 and 114.40 levels.
The same is being retraced now and it is taking shape of a triangle. USDJPY is expected to carve a lower top close to 115.70-80 zone and turn sharply lower towards 113.50 and beyond. The entire cycle should complete towards 109.00 levels before a meaningful pullback could take place. Watch out for a bearish turn sooner than later.
Trading plan:
Potential drop toward 109.00 against 118.50
Good luck!
