USDJPY has rebounded strongly from the 0.50 retracement just above the 100 and 200 Moving Averages to close to the 0.618 retracement at 142.08
Key question now is, will USDJPY break above 0.618 retracement and will RSI close back above 60 threshold. If that scenario plays out USDDJPY is likely to move to previous peak around 145.
If rejected USDJPY is likely to drop back below 140.
If USDJPY is taking out last week’s low at 137.23 an actual down trend would have been established with downside potential to 130.
On weekly chart USDJPY has bounced from its 21 and 55 Moving Averages and seems likely to resume uptrend.
Weekly RSI still positive sentiment with no divergence indicating likely higher levels above 145.