The pair could not break out above 114.50 and at 114.345 the bulls gave up. The weekly bar closed as a doji under the resistance marked by the Bollinger Bands indicator and the last of the series of daily bars at the high closed as a bearish hammer.
At the moment the pair is around 113.24 and at that level is the diagonal support trend line on the W1 time frame. The zone around 113.24 – 112.80 will be crucial regarding the future development of the pair.
If USD/JPY succeeds in overcoming that zone we could see it resume the medium term bearish trend with targets at 111.00 and 107.00.
The targets to the upside have long been known, but let’s see what the market will pick now.