The USD/JPY got rejected at the short-term resistance area of 118-118.30 and is pulling back downwards. A pull back is justified toward 116-115. Trend remains bullish in all time frames.
Red line - resistance
Short-term resistance is at 118. Support is at 117.40. Breaking below support will open the way for a move toward 116.50. Breaking above the red trend line resistance will open the way for a push toward 119-120.
Bearish divergence in the daily chart provides a warning for USD/JPY bulls. We should not ignore the huge rally from 100 and the possibility that will someday end, and provide an equally strong and sharp pull back. Confirmation of trend change will come once the red trend line support is broken.
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