USDJPY failed to hold above the key 120.00 level and breached this level at the start of this year to a low of 116.40. The underlying outlook is bearish and there is scope for deeper falls towards the 2015 lows of 115.84 and 115.55.
The technical indicators are bearish, with the tenkan and kijun lines being negatively aligned and RSI in bearish territory. The daily Ichimoku cloud is falling. Prices would need to move back above the key 120 level to bring the bias back to neutral. A break above the 128.84 high (from May 2015) would bring back the uptrend that started from the 2011 low of 75.55.
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