FxWirePro: USD/JPY downtrend loses steam but outlook still bearish

USD/JPY declined in the earlier session towards 122.70 levels. However, the pair has recovered to trade around 116.72 levels in the late US session. Currently the currency pair is trying consolidating around 116.67 levels and reaching higher levels in the short term. 

• A short pullback towards 117.00 levels should be viewed as selling opportunities as the resistance level located at 117.67 is set to hold the bulls from falling further above and push the pair towards lower levels in the short term, as the Japanese yen is stronger across the board against US dollar. Therefore, its good to sell this pair on rallies. 
   
• Strong support can be seen at 115.90, a break below this level will expose the pair towards next support level located at 115.44.
   
• Major resistance can be seen at 117.67, a break above this level will open the gates towards 118.36 levels.
  
  Recommendation: We prefer short around above 117.00 targets 116.50, 115.80, SL 117.90
  
  Resistance Levels
  
  R1: 116.70 (50% Retracement Level) 
  
  R2: 117.67 (23.6% Retracement Level)
  
  R3:118.36 (Jan 10th high)
  
  Support Levels
  
  S1: 115.90 (38.2% Retracement Level)
  
  S2: 115.44 (Dec- 14-04 lows)
  
  S3:114.70(23.6% Retracement Level)