Technical outlook:

USDJPY has been drifting sideways for the last 24-36 hours roughly between the range of 129.00 to 129.50. It might push through the 129.80-130.00 range before finding resistance and turning lower again. Bears will be poised to hold prices below 130.80 to keep the structure intact and drag towards 127.00 and 125.50 in the near term.

USDJPY has carved a down trade cycle between 131.34 and 127.51 in the past few trading sessions as seen on the 4H chart here. Also, note that recent downswing is between 130.81 and 127.51 respectively. Prices have retraced from the above downswing through 129.50-60 range, which is also the 0.618 Fibonacci level (129.57) projected here.

A high probability remains for a turn lower from here. Then, the price may continue through 126.50 and 125.50 as the next potential Fibonacci extensions marked on the chart. The above bearish structure would turn void only if prices break above 130.80 and broadly above 131.34 going forward. Traders might prepare to initiate fresh short positions now.

Trading plan:

Potential drop through 125.50 against 132.00

Good luck!