USDJPY carves a meaningful top around 114.46

USDJPY seems to have carved a meaningful top around 114.46 mark over the last week. The larger degree corrective structure also looks complete with a print above 112.00 resistance. Bears might be preparing to be back in control sooner than expected.

USDJPY pair faces intermediate resistance around 114.50, while support is seen at 113.00 levels respectively. A break below 113.00 would be the first confirmation of a potential bearish reversal ahead. Also note that an impulse rally looks complete between 109.15 and 114.46 as well.

If the above is correct, USDJPY should stay below 114.46 and turn lower from here. Further, prices would be heading lower towards 109.15 mark, which is Wave ((B)) triangle termination. Please note that USDJPY might have now completed its larger degree corrective rally, which had begun since 101.18 low in March 2020.

High probability remains for another larger degree corrective drop toward 105.00-106.00 zone in the next several weeks. A break below 109.15 would be required to confirm that a top is in place and bears are now back in control.

Traders might be willing to initiate fresh short positions between 114.20-30 zone. Potential risk remains above 115.50 mark while target is towards 106.00 at least.

The Profinacademy.com Team