Since the beginning of the year the currency pair managed to stay flat with a minor gain of 0.06% and continues in a bullish phase since late November 2016.
Last week the USDJPY went back and forward without any clear direction and closed in the middle of the weekly range, also managed to close within the previous week range, which suggests being clearly neutral, neither side is in control.
The currency pair could be making a potential double top near the resistance at 118.84 and may be setting for a correction before another upward move.
The stochastic is showing an extreme overbought market and is beginning to display a weak bearish momentum.
Expecting a downward move to a weekly support at 113.69 on a bounce from the weekly resistance at 118.84 (scenario 1) and a bounce from the weekly support at 113.68 may trigger a bullish run back up to the weekly resistance at 118.84 (scenario 2).