Short term outlook in USDJPY has turned to the downside cautiously, immediate resistance comes at the 119.16 levels ahead of the 119.79 levels (main), stability below resistance levels will keep the pair under pressure, however; support comes at the 118.55 levels, below the 1188.55 levels will open 117.85 levels, a halt is likely, but a cut will turn focus on the 117.00 levels, further down, support comes at the 116.00 levels.
On the upside, immediate resistance comes at the 119.16 levels, a break will turn outlook neutral and put the pair in recovery mode, but recovery above 119.16 should be limited by the 119.79 levels where reversal is very likely,however; a clear break above the 119.79 levels will turn outlook bullish and open the 121.25/122.00 levels.
Conclusion: The USDJPY continues to face downside threats in the short term below 119.78 even in case of a recovery…
Very Important: The pair hit strong demand zone in short and medium term outlook:
1- On daily time frame: despite the pair is bearish and under pressure, stability above the 118.80/118.38 levels on a daily closing basis will suggest a strong reversal to the upside, a clear break below 118.80/118.38 will turn focus on the 116.00 /115.50 levels.
2- On weekly time frame, immediate support comes at the 118.55 levels, stability above this level on a weekly closing basis could mean a push back higher towards the 122.00 levels.