The USD/JPY looks like it is completing a period of bearish correction as price retreated from 118.65 at the start of the year to 112.60 by mid-January. USD/JPY 4H Chart 1/23(click to enlarge)Bullish Breakout and a Pullback:- In the previous update, we saw USD/JPY break above the 50-period simple moving average (SMA) as well as a falling trendline. - The RSI pushed above 60, which showed a break from bearish momentum. But it failed to reach 70, which means there was no bullish momentum to follow.- Furthermore, the breakout retreated before being able to clear the 100-, and 200-period SMAs. - At this point, a break above 116.00 would serve a the next bullish continuation signal.Additional Near-term Trade Idea:- In the previous USD/JPY update, we assessed a trade plan to buy at 113.50, with a stop at 112.40, and targets of 116 and 118.- Consider an additional, adjusted trade idea born from near-term price action. - Looking at the 1H chart, we can see that there's some support above 113 at the moment. - If we can get in around 113.30 and put a stop at 112.90, a very conservative target at 114.50 would provide a 3:1 reward to risk. - This trade idea would serve as a play within the context of a bearish market because if price indeed holds under 114.50, it would be likely that bears are in control.