USD/JPY is stalling in the middle of the multi-month range between 108.00 and 114.60 – 115.00 without being able to pick a direction.
I expected that the pair would renew its rally, but for the moment that is not happening. On the W1 time frame the pair is developing a barbed wire formation: so far there are four closed bars and this week the drop has reached the strong support at 112.00.
The barbed wire, however, is a formation with an unknown outcome. It usually should not be traded before the pair picks a definite direction.
I think that the target to the upside is at 119.00 – 119.50 and it is still valid, while to the downside, in case there is a breakout below 112.00, the pair could reach the support zone around 108.50 – 108.00.
However, I still think that the most probable development would be a breakout above 114.50 and a rally to 119.00+.