Our previous update on USD/JPY anticipate a bullish push after a break of a falling resistance. However, as we can see on the 4H chart below, the breakout failed, and price came right back down to the previous low around 112.50. USD/JPY 4H Chart 1/26(click to enlarge)Bulls vs. 115.50:- At the moment, we can see that the 112.50 line was won by the bulls twice. - This price action simply reflects the market turning sideways after a couple of weeks in bearish correction.- While price is between 112.50 and 115.50, USD/JPY will be considered neutral.- A break above 115.50 would reflect bulls winning the battle of consolidation. - This bullish scenario would open up the 118.65 high, with risk of extending USD/JPY towards the 120 psychological handle. - If USD/JPY indeed breaches the 118.65 high, the 121.65, 2016-high, would be in sight as well.