USD/JPY 4H Chart: Rectangle

Dollar/Yen cross is at risk of declining in the foreseeable future, after it has formed the rectangle pattern during November. It implies a reversal of the bullish trend, which was in place during the first week of this month. The bulls will inevitably meet a substantial supply after 123.50, which consists of weekly and monthly R2s, Nov 9 and Nov 18 highs. Near term gains are fully supported by 4H and daily technical indicators, which are giving signals to acquire the Greenback. Moreover, USD remains oversold in the SWFX market, as the bearish share holds at 73%. Nonetheless, weekly technical indicators propose a sell-off, and we assume that more downside pressure will be felt around 123.50-123.80.