After the high at 108.676, the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke the zero baseline into negative terrain. This suggested that a possible downtrend might be in progress.
A likely critical formed when a bottom was recorded at 107.027 on the 21st of June. Buyers tried to push the market higher but supply again overcome demand with a Candle forming at 107.747 on the same day.
If the USD/JPY currency pair breaks through the critical at 107.027, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the lower bottom at 107.027 and dragging it to the top of the last pullback at 107.747, the following targets may be calculated. The first target can be anticipated at 106.583 (161 %). The second price target can be predicted at 105.863 (261.8%) and the third and final target may be expected at 104.700 (423.6%).
If the top at 107.747 is broken, the scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the USD/JPY currency pair on the H4 time-frame will be .