Blue lines- bullish channel
Red lines- Fibonacci extension targets
USDJPY yesterday broke out of the bullish channel and provided us with a first bearish reversal signal. As long as price is below 137.75 we are short-term bearish looking for a move towards 135.30 where we find the 100% Fibonacci extension target relative to the first decline. USDJPY has the potential to move even lower towards 134. I believe a short-term top is in and that traders should see this bounce as a selling opportunity. I prefer to be bearish as long as price is below 137.75.