• USD/JPY bulls are still in play with prospects of a daily close above 132.50.
• USD/JPYs trendline support is key at this juncture. 

In the prior analysis, 132.50 was cited as a key level that needed to stay intact for the bullish thesis to remain in place. However, this was on a closing basis and we are yet to see a daily close below there, yet. Therefore, the money longs have been given a lifeline despite a heavy drop in the US Dollar this week. 

USD/JPY prior analysis, daily chart

It was stated that ´´the bulls will need to commit, however, to the trendline support and preferably to above 132.50/70 for prospects of a breakout above 134.00.´´

USD/JPY updates

Meanwhile, we have since seen a move into test bullish commitments near 132.00 support, but the bulls are holding the fort where the trendline meets a 61.8% ratio of the daily bullish impulse. This leaves the bullish thesis intact but the bulls now need to get above the right shoulder of the head and shoulders on the 4-hour chart. 

USD/JPY H4 head and shoulders 

While a move to below support is troublesome for the bulls, so long as the 78.6% ratio holds, then it might not be game over for the bulls, but a break of the trendline will be problematic.