• USD/JPY bears are in the market front side of the bearish trend. 
• Bears are a meanwhile extension to the downside. 
• Bulls are lurking on longer-term time frames. 

As per the prior analysis, USD/JPY bears carving out a bias front side of bearish trend, the market remains in the hands of the bears, for the meantime, as the following analysis will illustrate. 

The key notes for the near-term outlook are as follows:

• We have the head and shoulders formed.
• We have seen a break of the 4-hour structure.
• There has been a correction into the bearish trendline resistance meeting the 38.2% ratio. 
• A downside continuation with 132.80 eyed.  

USDJPY weekly charts

Zooming in on the weekly chart, we can see that a W-formation is taking shape with the potential for the correction to run deeper into the Fibonacci scale. The 38.2% ratio has already been met where trendline support meets the lows, so a bullish impulse could take shape from this point. However, monitoring for a deeper more to the 50% mean reversion could offer the patient bulls a discount. 

USD/JPY H4 chart

We have the head and shoulders formed with the price on the back side of the prior rising trendline support that is now expected to act as a counter-trendline. We also have seen a break of the 4-hour structure and a correction into the bearish trendline resistance meeting the 38.2% ratio. Bears could engage here which would possibly result in a downside continuation with 132.80 eyed.