The currency pair USDJPY showed a remarkable upward movement, which was followed by a period of consolidation near the highs. During the consolidation phase, the price has been creating lower highs, indicating a potential change in the trend. If the price gets rejected at the downward trendline or this zone, there is a possibility that the lows could break, leading to a retest of support levels before the resumption of the uptrend. This scenario could provide traders with an opportunity to enter the market at a better price point, potentially increasing their profits in the long run.
We also have a potential bull flag, depending on how the price responds at this zone. For confirmation, we'll wait for a break above the trendline and the highs. If this happens we can enter a buy on the retest.