USDJPY is trading around 128.58. Price has exited the bullish channel it was in since the beginning of March. This is the first sign of weakness after a long time. Exiting the bullish channel it was in, implies that more downside should be expected.
So far price has not even reached the 23.6% Fibonacci retracement. The downside potential as a corrective pull back reached all the way to 120.80. Minimum pull back target is at 127.30. Next target is at 124.80. I expect USDJPY to be vulnerable to selling pressures over the next few sessions. The parabolic rise of the last three months in USDJPY justifies a deep correction. Short-term trend has changed to bearish. Bulls be careful.
