USD/JPY (a daily chart of which is shown) was overall mixed in the past week, as directional indecision characterized the pair for much of the week. Indeed, the close of this past week at 94.80 was separated by the prior week’s 95.05 close by only 25 pips. Generally, however, the sentiment this past week was bearish, as price made fresh two-month lows on its way potentially to fulfill the bearish forecasts of a large head-and-shoulders formation. Price should begin the upcoming trading week of May 25-29 slightly above the key 94.50 support, but re-breaking below this level would not be a difficult feat, as the technical bias is currently bearish overall. Immediate downside support below 94.50 resides in the 93.50 region, a breakdown of which should target further major support around the key 91.00 region. Upside resistance on any bullish correction within the current downtrend should meet strong resistance around the important 96.00 support/resistance region.
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