The pair is bearish in the long term, but neutral in
the short term. There are demand levels at 106.50, 106.00 and 105.50, which would
impede bearish movements and they would eventually help bring about a bullish
reversal. The outlook on JPY pairs remains bullish for this week, and the
USD/JPY pair is no exception.
When a breakout happens, it may be in favor of
bulls, as price goes towards the supply levels at 107.00, 107.50 and 108.00. This
is what can bring about a Bullish Confirmation Pattern in the 4-hour
chart. A breakout to the downside will
render this expectation invalid.