Outlook in USDJPY remains neutral at the moment, the pair remains in recovery mode as long as trades above the 118.80 levels on a daily closing basis and further upside towards the 122.00 levels couldn’t be ruled out. At this point, I’d expect strong resistance from the 122.00 levels to limit a rise from the 116.12 levels and bring fall resumption. However; a clear break above the 122.00 levels will extend recovery towards the 123.78/124.46 levels before the next fall.
On the downside, support comes at the 118.80 levels (main), a clear break below 118.80 will restore the downside momentum and open the 116.12 levels.
Conclusion: As long as 118.80 support holds on a daily closing basis, the USDJPY remains in recovery mode with risk towards the 121.00/ 122.00 levels before the next fall, below 118.80 will restore the downside momentum and open the 116.12 /115.00 levels.