Bearish USDJPY bias, but will it last?

USDJPY gains were posted from the European open Thursday but sellers emerged above 80.50 with the intraday chart posting a bearish outside bar, a pattern of trading consistent with exhausted bull market momentum and the start of a new bearish bias. This has seen USDJPY post a lower daily high. Although further selling could be limited, we look for this negative sentiment to continue today. Our call is bearish below 80.40.

The profit targets are 80.01, 61.8% pullback of gains from 79.64-80.63, then 79.83, Tuesday’s open, then towards 79.64, the 3 month low.

The risk however would be with buying through a stop at 80.40, yesterday’s intraday high.