• USD/JPY bears eye a 50% mean reversion that could be in play for the opening range over the coming sessions.
• 132.50 support could see a move from the bulls again and a continuation would initially target 135.50/137.20.

A 50% mean reversion could be in play for the opening range over the coming sessions and the next couple of days to test prior resistance near 132.50.  However, while on the front side of the trend, the bias remains broadly with the bulls.

The US Dollar was a touch lower in Friday's US session and the Yen touched a high of 134.05 in New York around the closing bell in a move that could be the foundation for a continuation on Monday. The following illustrates a bearish bias based on the W-formation on the daily chart:

USD/JPY daily chart

The W-formation is a reversion pattern and in this particular case, we have seen solid resistance at a round number and ongoing pressures into 134.00:

A 50% mean reversion could be in play for the opening range over the coming sessions and the next couple of days to test prior resistance near 132.50.  However, while on the front side of the trend, the bias remains broadly with the bulls and should the bulls either commit from here or lower down, a continuation would initially target 135.50/137.20:

USD/JPY H1 chart

Bears will need to break 133.70 structure which is all that is left to do now that they are on the backside of the hourly bullish trend.