USD/JPY is now declining toward the hourly support at 122.46 (10/06/2015 low). We expect the pair to test this support. We remain bullish for the pair as we stay largely above the 200- dma. However, the pair is gaining bearish momentum on the short term. Key resistance lies at 135.15 (14-year high).
A long-term bullish bias is favored as long as the strong support at 115.57 (16/12/2014 low) holds. A gradual rise towards the major resistance at 135.15 (01/02/2002 high) is favored. A key support can be found at 118.18 (16/02/2015 low).