Technical outlook:
USDJPY climbed through 124.22 mark on Thursday before hitting resistance and pulling back. The currency pair is seen to be trading close to 123.95 mark at this point in writing and is expected to resume lower from here. Bears might be inclined to hold prices below 125.10 mark to keep the structure intact and drag prices lower.
Also note that USDJPY has now tested the Fibonacci 0.786 retracement of the earlier drop between 125.00-10 and 121.30 levels respectively around 124.22 mark. High probability remains for a turn lower from here and drag below 121.30, up to 116.35 mark in the next several trading sessions.
USDJPY has carved a meaningful downswing between 125.10 and 121.30, which is followed by a corrective rally towards 124.22 mark respectively. If the above structure holds well, prices will stay below 125.10 and reverse sharply lower from here towards 116.35 and 115.00 levels going forward.
Trading plan:
Potential drop towards 116.35 against 125.50.
Good luck!
