USD/JPY is currently trading with a bearish bias. The pair traded short despite the previous bullish candles. While its clear the market may be headed short, we expect the downward movement to be short term probably with a stop at 120.37, any movement below this level will signal further movements towards the lower side hence short positions will be ideal for trading. This downward movement is highly anticipated since other positively correlated pairs such as HKD/JPY and AUD/JPY are pretty much bearish.
Remain short on all these positively correlated pairs as long as AUD/JPY trades below 86.006, and HKD/JPY below 15.62.