The USDJPY is approaching resistance from the 2/22 high at 121.63, the 2/12 high at 122.08, and the 1/29 high at 122.17. Daily RSI is overbought at above 70 - so we are weary of chasing this trend. In the short term, the USDJPY is in the 5th wave position of a 5 wave rally that began at 119.46.
A push above 121.60 would complete the rally and lead to at least a correction, although it is out contention that a much more significant top will form. The COT data shows that JPY shorts are getting stretched as well. We are sitting tight for now but watching the USDJPY closely for any signs of a reversal.