Despite the general strength of the US Dollar, this one looks like it’s heading the opposite direction, probably more a retracement than a new trend.
Fundamentally I haven’t been able to find any reasons for a change in direction. In fact Japan needs to get out of deflation, devaluing the currency and importing inflation has obviously been its course since Prime Minister Abe came to power, but some managers may be looking to take some profits, putting some downward pressure on price.
Two bar bearish formation appeared in December 2014 and it hasn’t been above those highs since. Fibonacci retracement lines from the beginning of the last rally, which started in October 2013, show first support at 115.80 area. Add the great distance between price and weekly Ichimoku cloud makes me think there’s a strong case for a correction.