Black lines- support trend lines
Yellow rectangle- horizontal support
USDJPY is pulling back towards 135.50. Price has formed a double bottom around 135.30 and is testing key support trend line and horizontal support levels. USDJPY is very close to provide a bearish reversal signal and confirm the end of the upward move that started at 127.24. Failure to hold above 135.30 will be a sell signal and would imply that more downside should be expected. At 135.50-135.30 we find a confluence of horizontal support and trend line support. Bears need to break below this area in order to reclaim control of the short-term trend. Next downside target is at 134 if price breaks below 135.30.
