The USDJPY has reached an important resistance area and I expect a reversal from current levels at least towards 110. The trend remains bullish in all time frames and I still do not have a bearish signal confirmation.
The USDJPY has reached the horizontal orange resistance at 112.20 and the 50% Fibonacci retracement from the 115.60 highs in March. The price remains in a short-term bullish trend as the price is above the Kumo (cloud).
With the USDJPY pair just below the blue trend line resistance and the Daily Kumo (cloud), a rejection at 112-112.50 will be a very bearish sign that would push the price towards 110 at least. So bulls should be very cautious as the upside potential is limited.
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