USDJPY dropped through 114.40 levels on Thursday, pushing closer to the next fibonacci target seen around 114.20. Also note that the immediate price support is also seen around 114.20, which is expected to be taken out soon. Bulls will remain inclined to come ack in control thereafter and push through 115.50 levels.
USDJPY might have carved a Double Top bearish reversal pattern around 116.35-40 zone as discussed earlier. A drop below 113.50 will confirm the same and that bears are back in control. Watch out for a drg below 114.20 levels in the short term before a meaningful pullback rally is on its way. Prices should stay below 116.35 to keep the bearish view intct.
USDJPY's larger degree wave structure also indicates a bearish view with a major top in place around 116.35. Potential remains for a drop through 112.50 and 109.00 levels in the coming weeks. Even if bulls manage to break above 116.35 mark, the upside remains limited and prices are expected to reverse ahead of 117.00 levels.
Trading plan:Potential drop towards 112.50 and 109.00 against 117.00
Good luck!