Technical analysis of the USD/JPY for January 21

Dollar/yen made an attempt to low yesterday, bottomed at 115.97 but closed the day higher at 116.95 and hit 117.47 earlier this morning. As seen on the chart below we have a four-hammer formation after rejection of important move below 116.00 support, which implies a potential upside pressure. The bias is bullish in nearest term testing of 118.00 - 118.50. However, the bearish scenario remains valid at this stage and only a clear break above 118.50 should it break. Support for the day is seen on 116.50. A clear break below it could take price to neutral zone for re-testing 116.00 key support, which needs to be clearly pierced down to continue the bearish scenario.