USDJPY Jan 14 to Jan 18 Outlook

Outlook
A monthly breakout in the making. The 86-88 long term target was posted long time ago when ninja was way down there forming the first weekly higher low. Since that objective is now completed, ninja has a choice to make here.

On monthly basis, the whole rally in ninja so far is just a bear flag. Ninja has to snap out of this bear flag in one of two ways.

Normally, if a market is developing a bottom, while the first reversal leg was a bear flag, it will go sideway with downward bias until the selling is absorbed at a lower price level. That means ninja will likely be forced to drop back down to 80-82 area at least once more to build a stronger base.

The other possibility is outright bear flag breakout to the upside. It happens a lot on turn around stocks so it depends on news (or in this case economic data improvements/disappontments).

Will stay with long side bias next week as long as B-0 is acting as support.