USD/JPY reached the zone around 113.20 – 113.25 and hasn’t been able to break out above it for seven days now. It is obvious that both bulls and bears are hesitating about the direction.
My expectation is that the pair will test 113.25 and after that it could rally to 114.00.
The other scenario is bearish – a test of the local low and then a move to the downside.
It is important to observe how the D1 bar will close today, since it could be a signal about how the pair will develop. Whether it will be a pin bar or a hanging man bar depends on whether the buyers or the sellers of the USD will become more active in the end of the American session.
I think that in case of a drop we could expect the pair to depreciate to 112.50 – 112.00.