USD/JPY is in a sharp pullback. The 4H chart shows that a similar type of decline happened in March, where the market walked back the enter prevailing swing. At that time, the 101.20 low held, and the market remained sideways, keeping a slight bullish bias because it was able to make a new high. (usdjpy 4h chart, 4/8) At the end of March, we made another bullish run, from 101.70 to 104.12. Ahead of Wednesday’s FOMC meeting minutes, USD/JPY is walking back this rally as well. You can see the sharp knife falling and breaking a projected rising support. As it tests this support, the 4H stochastic is oversold, so there might be some near-term support around 102.20. Support at 101.70 will be key to maintain a bullish outlook since a hold above that, let’s say at 102, would show ability to hold a higher low. It is also where a rising trendline is projected as seen in the 4H chart. Technically if it comes down to 101.20 and holds, we can’t shelf bullish outlook yet, but I would think that reflects a choppier market, and one that still has downside risk to wipe out 2014′s low before any meaningful bullish attempt. Fan Yang, CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes. Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.