The USDJPY maintained a bearish momentum few weeks ago, printed resistance at the 120.85 levels, bottomed at the 118.56 levels.
This development leaves the pair targeting the 115.85 levels where a cut is very likely, If seen, the focus will be at the 112.47 levels, a halt is very likely, but further down will pave the way towards the 170.52 levels.
On the upside, a failure to hold losses below the 118.56 levels could mean a return to the 120.85 levels, a halt is likely, but a break will open main resistance at the 122.00 levels. However; sustained breakout-weekly closing- above the 122.00 levels will have large bullish implications towards the 124.15/125.75 levels.
In all, as long as 120.85/122.00 resistance holds on a weekly closing basis, medium term outlook in USDJPY remains on the downside towards the 115.85/112.47 levels, above 122.00 will extend gains towards the 124.15/125.75 levels.