In the wider perspective, the USDJPY currency pair moves under the 2.5-year downward trend line. Last time it was tested at the beginning of November, where, as a result of the reflection, pair declined for three weeks in a row.
There has been a rebound since then, and the last 5 weeks we observe consolidation that has taken the form of a rectangle that is better visible on the H4 chart below.
Currently, the pair is heading again to the upper limit of the horizontal formation, which is located around 113.64. Overcoming this level will open the way to the key resistance zone, where the trend line discussed above coincides with the horizontal area within 114.37.
Alternatively, in case of negative data from the US labor market, you can expect further moves in the rectangle. Then the sellers will have to face support on 112.05.
I trade on this instrument at the broker XM, which has in its offer more than 300 other assets >>
