USDJPY is making lower lows and lower highs since early June. Price has broken below the cloud in early July and turned trend to bearish. Price has recently bounced from 104 to 106 as we expected, but we considered this move as short-lived.

USDJPY has resistance at 106.50. As long as price is below that level we remain bearish looking for a move back to 104 and lower. If 106.50 is broken upwards I expect price to move towards the cloud at 107.15-107.50. Another sign of weakness will be if price breaks below 105.30. This is where we find the tenkan-sen support (red line indicator).