• USD/JPY bulls are defending the daily trendline support.
• H1 bulls look to a restest of 114.50 before 115.00. Swing trading bears eye 113 the figure.

USD/JPY is under pressure below the 115.00 psychological level on Wednesday as US Treasury yields retreat from near two-year highs on 2-year and 10-year notes. Consequently, the greenback is pulling back and the yen bulls are taking advantage. 

The following illustrates prospects of a near term test of the mid-point of the 114 area that guards a run back to test the bearish commitments below the hourly trendline resistance as well as daily bearish prospects to 113 the figure:

USD/JPY H1 chart

The M-formation is a reversion pattern for which the price would be expected to move higher to retest the old support, aka, the neckline of the M-formation. This coincides with a trendline taking into account the opens and closes while guarding a run to the trendline based on the highs. 

USD/JPY M5 chart

Traders can look for a scalping opportunity and optimal entry point to target the short term target and the midpoint of the 114 area.114.35 is the current resistance that the price will need to overcome. 

USD/JPY daily chart

Meanwhile, the daily outlook is also showing an M-formation, for which the neckline has already been tested:

The price was heavily rejected on a retest near115 the figure, or, the neckline of the formation. The bears are now battling with the bullish commitments at the rising dynamic support which could give way at some point over the course of this week, potentially following one last effort from the bulls. If the trendline breaks, then the focus will be on the downside towards 113 the figure.