A minor adjustment in the trend channel from last week.
The resistance level at 1.06 have held, resulting in a bear candle on Friday.
The bear candle supports the trend plus the resistance. While the pair may show signs of weakness, watch for the key support at 1.038 to 1.04 area.
The pair has stuck to the falling trend channel thus far, and even with the Friday's spike, looks to continue within the falling trend.
We can possibly expect the pair to test the 1.06 resistance region again before falling.
USD Downside has been sluggish and exhibited a similar sluggish pattern in early Dec.
The slow downside is usually followed by a big USD move upwards. With NFP incoming, we can expect the USD to start pricing in the upmove on Monday.
BoJ's policy announcement (last for the year) may see USDJPY fall momentarily before resuming its strong uptrend.
No reason for bearish sentiment for the USD, now that the Fed has raised rates and is hawkish about their stance next year.
Price was resisted again at 1.017 level with Friday's candle forming a nice little shooting star.
Expect the pair to test the resistance and possibly near 1.025.
If the 1.017 continues to hold, there may be a chance for bears to come in.