From last week: “The earlier part of this week was mostly bearish as the price is currently 119.62 and the setup remains bearish as we are currently breaking below two converging trend lines as shown on the chart. A daily close below 119.60 levels could expose the next target at 118.64 levels. 118.64 is the DMA. If on the contrary we bounce off 119.60 levels we should expect to trade back around 120.27 the 4-hourly pivot point”.

USD/JPY fell to 118.33 last week, but has bounced back to 119.81 at the start of the week. The pair remains heavy as we approach 120 and only a decisive break of resistance around 120.77/121 could give an acceleration to the upside. This move remains unlikely this week as traders await the US jobs data and the pair is more likely to trade in a range between 120.40 and 118.60.