The USD/JPY market has retraced 78% of the last swing down and made a local high at the level of 110.00 which now will act as a technical resistance level for the bulls. Since then the price has been trading sideways, but just above the trend line support. Any violation of this trendline will likely result in another leg down towards the level of 109.14 and the recent Bearish Engulfing candlestick pattern supports the bearish outlook.