USD/JPY is trading in a short-term bearish channel from 123.50 and is testing the neckline support at 117-116, which is a very important long-term support. Resistance is at 118.85. If it is broken I expect this pair to push towards 120. Otherwise, we should reach the 116 area.
The short-term resistance is at 118 and next at 118.85. Support is at 117.15. The trend is bearish. The price is below the Ichimoku cloud and below both cloud indicators (tenkan-sen and kijun-sen).
According to the daily chart, the price has broken below the Ichimoku cloud and the decline has stopped right at the red neckline support of a potential Head and Shoulders top. A break below 116.50 will be a bearish signal, but with oscillators oversold there are more chances of a bounce towards 120 now.
