USD/JPY Price Analysis: Bears lurking near 136.50

• USD/JPY bears are lurking and eye the 135.50s.
• The 135.50s guard 133.00 to the downside and a break of the trendline support.

Following the hotter-than-expected US data, the US Dollar index rallied through the 105.20s to a seven-week high and putting it on track to post its largest weekly gain since late September. In turn, USD/JPY rallied hard but it is now in a corrective territory as the following illustrates: 

USD/JPY and DXY analysis

The US Dollar could be on the verge of a significant correction and that could well play out as follows in USD/JPY:

USD/JPY rallied on the final day of last week and has left the price vulnerable of a correction:

The 135.50s guard 133.00 to the downside and a break of the trendline support.