Technical outlook:

USDJPY has defied resistance yet again as bulls print another swing high around 121.75 on Thursday. The currency pair has produced a religious rally after breaking above its triangle consolidation earlier and is close to terminating around 122.20 levels. The Fibonacci 1.618 extension is seen passing through 122.20 mark as well, hence resistance should be strong.

USDJPY was in a rising support (113.50, 114.65) and constant resistance (116.35) triangle consolidation earlier as seen on the 4H chart. Bulls were able to break the structure by pushing through 116.35 mark. The thrust wave between 114.65 and 121.75 looks near to completion as both fibonacci extensions are almost met.

If the above proposed structure holds well, USDJPY should resume lower from here (112.60-122.20 range) sooner than expected. Also note that the recent swing high at 121.75 is accompanied by sharp bearish divergence on the RSI (which is not shown here). Prepare for a turn lower from here.

Trading plan:

Preparing for a potential turn lower against 122.90

Good luck!