USDJPY pulled back to the 115.75 mark on Monday before finding resistance again. The pair is trading close to 115.30 at the time of writing. It is expected to continue lower toward 114.50 in the near term. Bears are inclined to remain in control as long as prices stay below 116.30-50 zone, which is a potential double top.
USDJPY has carved a meaningful top around 116.35, which has been tested recently at 116.33 before turning lower again. The currency pair had dropped through the 115.00 mark before pulling back. A break below 115.00 will accelerate further to the 114.50 and 113.50 levels. The double top pattern would then be confirmed as bears take control.
USDJPY Fibonacci targets are also pointing lower toward 112.50 and 109.00 in the coming weeks. A break below the channel line support, which is seen around 115.00 will accelerate further through the 114.50 mark. It would also increase the probability of a major lower top in place around the 115.33 level. Immediate price support is seen at 114.20 and bulls will be inclined to break lower.
Trading plan:Potential drop to 114.20-50 against 117.00
Good luck!