USD/JPY is currently trading with a slight bullish bias. The pair is reluctant to continue long even after reaching our target key support 120.338. Since the other positively correlated pairs such as HKD/JPY and NZD/JPY are pretty much bullish, we expect this Yen pair to follow the suit. Ideally, wave (c) in pair should have enough force to crush above the long term resistant 121.69, and even take it further up. Although there are exhaustion candles, we choose to remain flat for now, and wait for price to close above 120.55 before we can go long on this pair. In the meantime, the pair may go long, but in the long run, we anticipate further downward movements.
If you are not short already, wait and sell below 120.20. Alternatively, should the price move upwards, then buy above 120.59