USD/JPY is currently trading with a bearish bias. The pair crossed and closed below a significant support trendline, and is currently headed towards a significant key support 118.44. It is clear that USD/JPY market is still equilibrium phase, not closing above 121.00 and not going below 119.00. We are waiting for a clear break on either of this levels before we can confirm that the equilibrium is over. This pair is strongly positively correlated to USD/CHF and HKD, they are thus expected to move in the same direction. Only buy or sell the pair is all the other positively correlated pair are giving the same signal.
We are waiting for a potential buy position at 118.44, or to sell below 118.44. A close below 118.44, will signal a break of the equilibrium thus further movement to the lower side is expected.