Bounce Fades, Concluding False Break Higher

• RES 4: 135.12 50-day EMA
• RES 3: 134.77/81 High Jan 6 / 23.6% Oct - Jan downleg
• RES 2: 132.87 High Jan 11
• RES 1: 131.71 20-day EMA
• PRICE: 131.45 @ 16:47 GMT Jan 18
• SUP 1: 128.10/127.23 Intraday low / Low Jan 16 and the bear trigger
• SUP 2: 126.81 1.382 proj of the Oct 31 - Nov 15 - 21 price swing
• SUP 3: 126.36 Low May 24 and a key support
• SUP 4: 125.49 1.50 proj of the Oct 31 - Nov 15 - 21 price swing

USDJPY rallied sharply following the BoJ decision, with price nearing resistance at the 20-day EMA of 131.71 before fading sharply. This keeps the primary downtrend intact, with the bounce considered corrective in nature. However, a continuation higher near-term is possible as the pair unwinds a recent oversold trend condition. A break of 131.71 would open 132.87, the Jan 11 high. Key support has been defined at 127.23, the Jan 16 low.