The Japanese yen has been resilient since the middle of June, but as we approach the middle of July, it is paring its gains. The USD/JPY for example retreated from a 2015-high of 125.88 to 120.40, but is threatening a bullish continuation as we wrap up the week.During the 7/8 session, we saw the USD/JPY fall sharply, and I noted that it was USD/JPY approaching some key support factors. 2 sessions later, the market has rebounded as anticipated, as we can see in the dailyUSD/JPY Daily Chart 7/10(click to enlarge) The daily chart shows that USD/JPY bounced off 120.40, which is in a previous resistance pivot area. It was also where price met a rising speedline that came up from the 2015-low in January, at 115.85. As we wind down the week, the rebound is pushing at 123. If price breaks above 123, it would break a month-long flag pattern. This break would likely resume the bullish trend and put the 125.85 high back in play. From a fundamental standpoint, this would be in-line with the divergence between the Fed and the BoJ. The Fed is leaning towards a hawkish mode while the BoJ remains in a dovish mode. The resilience in the yen in the past month can be attributed to some short to medium-term risk aversion in the stock markets, specifically the Chinese stock market. However, the central bank divergence is a more over-arching factor for the currency pair.