FxWirePro: USD/JPY likely to break supports at 118.854 - drifting sideways to bearish trend

The pair has broken a strong support at 118.854 but the break below is keenly watched on closing basis, as it would build new bearish environment.

On a long-term perspective, the non-directional trend is now slightly sensing weakness that lasted for almost 1 year (that has remained in the range of 116.082 - 125.856).

While USD/JPY's uptrend is contracted into narrow range, other oscillating indicators shown a clear convergence to the previous puzzling swings in sideway trend; for now bearish sensation is piling up although interim upswings cannot be disregarded.

Most significantly, weekly prices have slipped below 21DMA to signify the bearish trend to prevail further.

Massive volumes build up on every price decline (see grey shaded areas).

Most likely and alternative scenarios: Strong resistance is seen at 120.500 but more interest is observed to remain below support at 118.854.