USD/JPY fell around -12% from its October high to December low, but is showing signs of a potential bullish reversal.
USD/JPY managed to hold above the 133.62 low and formed a higher low with a Doji, which is part of a 3-bar bullish reversal pattern (Morning Star Reversal). The 200-day EMA is also providing support. Prices have fully recovered the losses following the US CPI report, and now testing trend resistance. A break above 138.2 assumes bullish continuation and confirms a trend reversal on the daily chart. 140 and 142.50 are potential bullish targets.