The US Dollar surged higher Intraday, especially against the Japanese Yen. It is nearing 8-year highs, and facing a monster resistance on the higher time frame. That’s why, I think the USDJPY pair might come under bearish pressure once it reaches around 123.00-20. We need to see how the US Dollar sellers react around the mentioned resistance area and wait for a sell opportunity with bearish divergences on the lower timeframe. Remember, waiting for the right time is very important in the short term.

Technical Analysis
Monthly – Critical resistance around the previous high and the USDJPY pair is heading towards it.

H4 – Wave duplication is also around the highlighted resistance area.

Entry:
H1 – We can enter a sell trade for the USDJPY pair once the pair fails around the 123.00-20 resistance area and forms a bearish divergence.
Target 1: 122.40
Target 2: 122.00
Stop Loss: A 4H close above the high created before entering into the trade.

Video Explanation:

Yours,
Vladimir