Technical outlook:
USDJPY has pushed through yet another high close to 119.40 mark over the last week before finding resistance. The currency pair has produced a shooting star candlestick pattern on 4H chart, indicating a potential reversal. Ideally, prices should stay below 119.40 swing high to keep the proposed bearish structure intact.
USDJPY had earlier broke above its triangle consolidation above 116.35-50 mark. The currency remained sideways carving a constant resistance (116.35) and increasing support consolidation structure as depicted here. The thrust wave since 114.65 mark looks to be complete now and bears might be back in control anytime soon.
Immediate price support is seen at 118.40 level and a break there will confirm that bears are ack in control. The next major support is seen around 116.35 mark, which was the past resistance. A continued break below 114.65 will confirm a major bearish reversal going forward. It would be interesting to see how prices react now.
Trading plan:
Potential bearish reversal on a break below 118.40.
Good luck!
