FX.co ★ USDJPY short-term technical analysis.

analysis on USDJPY we noted the increased chances of a corrective pull back if support at 134.60-134.70 failed to hold. Bulls so far seem able to defend this level and price is now bouncing off this support. We continue to believe that although technically trend remains bullish in USDJPY, it is preferred to stay neutral and wait for a sell signal below this key support. We continue to expect USDJPY to roll over. Recent price action has confirmed the importance of the support at 134.70-134.60. That is why if and when price breaks below this level, the sell signal will be an important one. USDJPY could produce a new higher high. However the risk of a pull back towards 131 is high and that is why we prefer to be neutral.