Last week the USD/JPY pair showed a great amount of exhaustion after the price reached near the resistance area 115.00-20. A good amount of selling pressure is still in play though USD had some positive fundamental reports last week. Today the USA is having bank holiday due to President Day but USD seemed to gain some strength against JPY due to Trade Balance deficit of JPY at 0.16T which was expected to be 0.28T. This week can be in favor of JPY because of confused atmosphere about Trump's ability to run the US government, which is making USD a bit weaker. In this case, upcoming FOMC meeting on Wednesday will be very crucial for USD to show the upcoming moves against JPY, till then JPY is expected to gain strength against USD.
Now let us look at the technical view, the price is currently rejecting from the 20 EMA resistance and 113.26 horizontal resistance level. As of the prior candles in H4 chart, the bulls seemed to be weaker while pushing against the resistance and currently the bears are taking over. It is expected that in the short term, the price will hit the support 112.50 and if 112.50 is broken with a daily close we will be looking for a lower target towards 110.60 in the future. Though there are very less chances for the bulls to get back in power, for the reverse situation. If the price breaks above 113.26, we will be looking forward for buying with a target towards 115.20 again.