Since its plunge from 125.27 in mid-Aug to 116.19 on Aug 24, USDJPY has been confined to a 118.58-121.31 range. The key level that prices are hovering around is at 120.00.
USDJPY remains capped by the daily Ichimoku cloud and this is keeping the bias for a bearish resumption. The tenkan-sen and kijun-sen lines are negative aligned, highlighting the overall bearish market structure.
A break below the October 2 low of 118.67 would increase a downside move. RSI is trending downwards and is below 50, which also indicates a bearish bias.
A daily close above the cloud top is needed to shift the overall bias back to the upside. For now USDJPY remains neutral.
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