USD/JPY: Evidence of a temporary top, sellers control hourly flo

We are starting to get clear signs that this market wants to roll-over by rejection, yet again, the massive weekly resistance between 114.00 and 115.00. The pullback we are seeing is still within the context of an up-cycle on both the weekly and daily, but the first red flags are starting to pop up.

Firstly, the expected 100% projection to 114.40/50 is not complete. Secondly, as we dissect the hourly, we can see the ascending trend line has been violated amid an increase in sell-side volume, which tends to be a continuation leg.

Additionally, both the US vs JP 5-year yield spread and the risk sentiment index are both hinting further downside. The next key support levels, as highlighted in the chart above, stand at 113.35 ahead of the psychological 113.00 round number.