JPY firms against US dollar, more downside expected

Pair is well supported above 117.00 marks. It made intraday high at 118.24 and low at 117.33 levels. 

• A break of 117.05 is necessary to confirm the bearish trend and below this major support falls at 117.85 levels.  
   
• On the top side, a daily close above 118.31 levels is required to confirm the trend reversal.
   
• Initial support levels are seen at 116.59, 117.85 and 113.59 thereafter.
   
• On the top side, resistance levels are seen at 118.31, 119.59 and 121.31 levels.

We prefer to take short position in USD/JPY around 117.75, stop loss 118.31 and target 115.65 levels.