123.50-124.00 has proven to hold as a formidable that was a former support outlined in a related publication linked below. With the recent price action at the end of last week USDJPY's long term trend that originated back in late 2012 is being put in potential jeopardy. Over the coming days/weeks pay very close to how price is beginning to react to this level. A confirmed close on the should bring a a retest of the level followed by a great selling opportunity.
On a grand scale should this short opportunity come to pass, it could lead to a good confirmation for a reversal pattern (requires a significant move lower before any confirmation is considered).
On the flip side for a trend continuation, breaking the shown on the daily should bring another extension of this , at minimum to retest the highs of 2015.
Keep in mind that the point of convergence for the bulls and the bears is a little more than 2 months away....meaning it's entirely possible for the market to be range bound between these two levels before it has to make a decision. Due to recent price action from last week....I expect the momentum to continue to a minimum retest of the long term support.
Here's a quick look at the Hourly:
Please do your own analysis before entering a trade. Comment/Like/Follow.