Red lines- bearish channel

Violet lines- Fibonacci retracement levels

USDJPY is trading around 132.85 today after opening with a gap up. Price is approaching the 23.6% Fibonacci retracement of the entire decline. Last week price exited the bearish channel it was in since October. In our last analysis on Friday we talked about the short-term change and the potential of a major bottom as price was back testing the inverted head and shoulders neckline. Our minimum bounce target area is at the 38% Fibonacci retracement level at 136.70. We might first see a gap close at 131.25 in order to back test the break out. Key support remains at Friday's lows at 128.30. As long as price is above this level, bulls are in control of the short-term trend.