Outlook in USDJPY has turned neutral at the moment , trapped within 119.35/120.05 levels . On the upside ; a failure to hold below the 119.35 levels on a daily closing basis could mean a return to the 120.05 levels a halt is likely but a break would open 120.85 next , further upside will target the 122.00 levels.
On the downside , support comes at the 119.35 levels , sustained breakout below this level will suggest short term topping and open the 118.71/118.32 levels , further down will target the 117.59 levels….
In all , the USDJPY is likely to consolidate within 119.35/120.90 range , a clear break above the 120.90 levels is needed to restore the mid-term bullish trend , If seen , a higher leg above the 122.00 levels is suggested towards the 123.00/124.00 levels , below 119.35 will open 118.70/118.32 levels ahead of the 117.59/117.00 levels…
Note that any bullish move on daily time frame below 120.90 is likely to come with low momentum , sustained breakout – 2 or 3 daily closing below the 119.35 levels will open 115.00 levels in mid-term outlook……….