Technical outlook:

USDJPY is producing a counter trend rally toward 123.60-124.00 zone before it could find resistance. The currency pair might have carved a formidable resistance around 125.00 levels and could be soon on its way lower through 116.35 at least. Bears need to hold prices below 125.10 mark to keep the bearish structure intact.

USDJPY had been in a triangle consolidation earlier, which got burst above 116.35 mark as bulls regained control. The currency had produced a religious rally towards 125.00 mark in a thrust wave after triangle breakout. It could be the last leg higher before reversing sharply and drag below 116.35 mark going forward.

Also note that potential remains for a break below 114.60 initial support. If the above unfolds accordingly, it will confirm a bearish trend reversal as prices head lower through 109.00 i the next several trading sessions. Watch out for a bearish turn around 123.60-124.00 zone in the next 1-2 trading sessions.

Trading plan:

Potential drop through 116.35 against 125.50

Good luck!