Technical outlook:
USDJPY pushed through 118.00 mark on Monday after prices broke its triangle consolidation over the last week. A major resistance is seen just a few point higher around 118.65 mark and prices should ideally stay lower to keeps the structure intact. A consistent break above 118.65 will confirm that bulls are now targeting above 124.00.
USDJPY has been consolidating within a triangle/wedge structure in the past several trading sessions as shown on the 4H chart here. The thrust wave has travelled between 114.80 and 118.00 levels, which looks complete now. If correct, we should see a sharp reversal back to 114.80 levels in the next few trading sessions.
On the flip side, a push through 118.00 will threaten to break above 118.65 mark keeping bulls in control. Aggressive traders might still want to remain short with risk above 118.60 mark, targeting below 114.80 near term.
Trading plan:
Potential bearish reversal towards 114.80 against 118.60
Good luck!
