• USD/JPY is under pressure within a bullish trend.
• The bears need a break of the hourly structure but the bulls remain in control.

USD/JPY is under pressure in the latter part of the North American session and there are a couple of scenarios identified according to the market structure on the hourly time frames as follows:

USD/JPY H1 bullish scenario

The price is in an ascending trend but the W-formation in a reversion pattern that would be expected to draw in the price towards the neckline and the trend line support as illustrated above.

There are two areas of hourly price imbalances (PI) above and below the current market and it is a question of which area will be mitigated first. In a bullish scenario, the price could move lower to collect liquidity from the imbalance of price to fill buy orders leading to a subsequent rally and potential upside continuation. 

USD/JPY H1 bearish scenario

In a bearish scenario, the price could move higher to fill the sell orders which could lead to a surge lower for a test of support. If the offers overwhelm the bids at that juncture, then a continuation lower could evolve on a break of structure, BoS.