USD/JPY Price Analysis: W-formation's support structure eyed near 132.80

• USD/JPY bears are lurking in territories above a critical structure in the 133.70s.
• The W-formation could hamstring further bullish advances.

USD/JPY has been in the hands of the bulls which leaves a bias to the downside for a move into longs that had last accumulated since the middle of the month. The following illustrates the prospects of a move to restest the W-formation's neckline on the daily chart.

USD/JPY daily charts

USD/JPY is on the backside of the prior bearish run, which puts the focus on the upside longer-term. However, for the time being, there are prospects of a move into longs above 130.50. 

The W-formation is a reversion pattern and the price has a tendency to move back to restest the neckline. However, in this case, the bullish leg is overextended so there are possibilities that the price may only reach as far as the prior resistance near a 38.2% Fibonacci around 133.00.

USD/JPY H1 chart

USD/JPY has started to top out and a break below 133.80 structure opens the risk of a significant correction for the day ahead.