USDJPY remains under pressure. Short-term trend remains bearish as price continues making lower lows and lower highs. Price is trading below the 23.6% Fibonacci retracement and below the key resistance trend line now at 127.95.
Blue lines- bullish channel (broken)
Red line- short-term resistance
Black lines- FIbonacci retracements
USDJPY has broken the bullish channel and is now correcting the upward move from 114-115. As long as price is below the red downward sloping resistance trend line, we expect USDJPY to move lower towards the next key Fibonacci retracement at 124.40. A break above 128 will cancel this bearish scenario.