Technical outlook:

USDJPY has drifted sideways in the past 24 hours and re-tested the 127.15 lows before pushing back through 127.50. The possibility remains for yet another shallow low below 127.00 before bulls are back in control. Watch out for a push above 128.25 to confirm a counter-trend rally is underway towards 129.70.

USDJPY has carved a meaningful downswing between 131.34 and 127.00 in the past few trading sessions. Also, note that bears have been successful in taking out supports at 128.75 and 127.00 respectively. Ideally, the currency pair should produce a counter-trend rally from here towards the Fibonacci 0.618 retracement around 129.70.

USDJPY bears will remain inclined to be back in control from 129.70 going forward. Also, note that prices should stay below 131.34 to keep the bearish structure intact. Projected downside targets are seen towards 124.30 and 120.00 as projected on the 4H cart presented here. Traders might look to add further on rallies.

Trading plan:

Potential drop through 124.30 and 120.00 against 131.34

Good luck!