USDJPY short-term bias is neutral after the pair met with resistance at the November 18 high of 123.74. This level is a key Fibonacci level (78.6% retracement) of the fall from 125.84 to 116.13 (June to August decline).
Support is provided by the 61.8% Fibonacci level at 122.13. If this support level holds, there is scope for a bounce back up to 123.74 as some technical indicators are still showing bullish signals. The tenkan-sen line is above the kijun-sen line and are both positively aligned and the market is above the Ichimoku cloud. RSI is still in bullish territory above 50 but it is pointing downwards which suggests consolidation/correction in the near-term.
A decisive break of 125.84 will confirm the resumption of the up trend that started in July 2014.
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