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USD/JPY Pulls Back after Opening the Week with a Breakout

USD/JPY broke below a common support around 117.20 and tagged 116.75 before pulling back to about 117.80. 

USD/JPY 4H Chart 2/2


(click to enlarge)

Okay, so this might be a legit breakout but it looks like if it is legit, we should see resistance around 118.00. Otherwise, we might be back to square one. 

The bearish outlook would be limited to 115.56 (Dec, 2014 low) to 115.86 (Jan. 2015 low), which is a descending triangle seen in the daily chart.

What a coincidence. USD/JPY just broke below a descending triangle in the 4H chart. 

Now, in the daily chart we can see that the market has been bullish. The fundamentals have not shifted much and at most the uptrend has decelerated or gone into consolidation. Therefore, we should first respect the 115.56-115.86 support area. 

USD/JPY Daily Chart 2/2


(click to enlarge)