FX.co ★ USDJPY in bearish mode.

Red lines- bullish medium-term channel

Short-term trend has changed to bearish in USDJPY as price broke out and below the Ichimoku cloud as we warned in a previous analysis. USDJPY remains vulnerable to a decline towards 140-142 specially if price breaks below recent lows that provide support around 145-145.50. Although price remains inside the bullish medium-term channel, technically trend remains bullish. However recent price action suggests that price is vulnerable to a corrective pull back towards the lower channel boundary. 500 pips are not a small correction. USDJPY is currently trading around 145.66 above key support. A break below 145.50-145 would be an added bearish signal. Our last bearish signal was on November 4th when price broke below the cloud support at 147.15.