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  • USD/JPY bull sin control while holding above 4-HR support.
  • Resistance in the 107 area is capping bullish attempts and failures could trigger a battle for control.
  • A break of support at this juncture would lure in the bears to test a 61.8% Fib and prior key support structure.

USD/JPY is trading just sub the 107 figure where it has struggled to penetrate into fresh grounds all of the past week, weighed by supply in territory identified in early analysis this week:

USD/JPY: Something for both the bears and the bulls

Meanwhile, continuing with the most up to date price action, we can see that the bulls remain in charge while holding above critical 4-HR structure, as follows:

On a break of the downside structure, then the bears will be enthused for the prospects of a test of the previous highs on the daily chart, located around 106 the figure. 

The wider market structure in a top-down analysis is as follows, starting with the monthly chart:

Monthly chart

Weekly chart

If the resistance gives out, then this would require new analysis and the upside will be in play.

Daily chart

The bias, on a wider outlook, taking into account the monthly support structure and fake breakout, would suggest that once a retest of the daily resistance occurs, now turned support, the wind will be in favour of the bulls. 

In the very near term, however, the bears will seek a run to the 61.8% Fibonacci level and the confluence of the said daily support.

The eclipsed pin-bar in the above chart, while it would appear to be a bullish factor on the daily chart, it is, in fact, going to be a keen level of interest on a failed attempt at current resistant which coincides with the 38.2% Fib initial target.