USDJPY is trading around 126.97. Short-term trend is bearish as price is making lower lows and lower highs. Price continues trading below the key downward sloping resistance trend line. As long as this is the case, price will remain vulnerable to sellers. If bulls manage to break above 127.55 we will have a bigger upward breakout.

Blue lines- bullish channel (broken)

Black lines- Fibonacci retracements

Red line -resistance trend line

USDJPY is vulnerable to a move towards the 38% Fibonacci retracement at 124.55. Currently at 126.90, if price breaks below 126.45 we will get a new bearish signal. On the other hand a break above 127.55 would push price higher towards 129-129.45. Currently we prefer to be neuetral if not bearish.