Technical outlook:
USDJPY raised through 128.70 high early during the Asia Session on Friday. The currency pair has faced resistance and reversed sharply thereafter sliding below the 128.00 mark. It is seen to be trading at the day's low around 127.95 mark at this point in writing. It seems like bears have managed to carve a meaningful top around 129.40 levels earlier.
USDJPY should ideally stay below 129.40 and drag lower through 125.00-10 initial support in the next few trading sessions. The currency pair has csrved a potential downswing between 129.40 and 127.40 levels in the past few trading sessions. Bulls are producing a counter trend rally since 127.40 low, which might be complete around 128.70 level.
If the above structure unfolds accordingly, prices would now stay below 128.70 and break below 127.40 mark accelerating through 125.10 in the near term. On the flip side, the counter trend rally could push through 128.80-129.00 levels before terminating and then turning lower. Either way, USDJPY seems to be preparing for a huge slide against 129.40.
Trading plan:
Potential drop to 125.00 against 130.00
Good luck!
