Technical analysis for USD/JPY, the pair formed a double top and broke below a bearish flag on the daily chart, starting a pullback. The first target for this pullback in the USD/JPY is the 0.382 FIB retracement on the daily chart at 127.55 was reached. The second target is the daily low at 126.95 – 127.00. The third target is the 0.382 FIB retracement on the weekly chart at 124.90, and just above is the 0.618 FIB retracement and the daily 50 EMA around 125.30.
Looking at the bigger picture, the USD/JPY broke above the 2015 high at 125.85 and reached the fourth target of the bullish wave on the weekly chart and the first target of the bullish wave on the monthly chart at 129.55. The price went as high as 131.34. The next target for the bullish wave on the monthly chart is the 2002 high at 135.16. If the USD/JPY pair breaks above it, it will open the door for a bullish run toward the 1.618 FIB extension on the monthly chart around 139.30.