Technical outlook:
USDJPY raised through 129.00 mark on Friday to complete its corrective wave. The currency pair has since reversed and is trading close to 128.15 level at this point in writing. The wave structure is looking constructive for bears as they remain poised to hold prices below 129.40 and drag below 127.45 going forward.
USDJPY had earlier dropped between 129.40 and 127.45, carving a lower degree downswing. The same has also been retraced up to fibonacci 0.786 levels around 129.00 mark over the last week. High probability now remains for an extension below 127.45 and towards 125.00 mark to complete the wave.
USDJPY seems to have carved a meaningful top around 129.40 levels recently. If the above structure holds well, bears will be poised to hold prices below 129.40 and drag towards 125.00, which is initial support. A break there will confirm potential trend reversal and that bears are back in control. The drop will accelerate below 127.45.
Trading plan:
Potential drop to 125.00 against 130.00
Good luck!
