Since the start of the year the currency rose 0.4% however this past week fell more than 1.5%.
Last week the USDJPY fell with a wide range and closed near the low of the week also managed to close below previous week low suggesting a strong bearish momentum, however the pair held above the 50 week moving average.
The Stochastic is displaying a bearish momentum and crossed below the 80 line giving a sell signal.
Last week the USDJPY is in a distribution phase and is trading above the two weekly moving averages 50 and 200 signaling that the uptrend is still in place.
Expecting a downward move to a weekly support at 118.837 on a break below previous week low at 120.579 (scenario 1) or a bounce from a weekly support at 120.579 could push the currency up to a weekly support at 121.840 (scenario 2).