Technical outlook:
USDJPY had slipped through 127.45 lows on Wednesday before finding support. The current pair might have carved a meaningful top around 129.40 levels and ideally prices should stay lower. A push below 127.45 from here will confirm and accelerate lower towards 125.10 initial support. Intraday resistance is seen around 128.80-90 zone.
USDJPY has carved a meaningful downswing between 129.40 and 127.45 levels. Prices are working on the above boundary and the pullback could extend through 128.85 levels before terminating. Bears will be poised to resume lower thereafter and drag below 125.10 in the next few trading sessions.
USDJPY bearish reversal will be confirmed only after prices break below 125.10 initial support. Until that happens bulls are free to attempt another high above 129.45 mark. Having said that please note that upside remains limited from here while the downside risk remains very high as bears remain inclined to drag through 116.35 mark.
Trading plan:
Potential drop through 125.10 aginst 130.00
Good luck!
