FXStreet (Guatemala) - USD/JPY is currently finding the resistance at 118.20 a tough nut to crack while the market was a little risk friendlier, but the 200 sma on the hourly chart is proving resilient currently. The pair is consolidating into a channel between 116.68 and current highs at 118.26 and while the markets are still in risk-off mode overall, the downside is favoured hence the fade overnight to 117.28. Fundamentally, we are looking at next week for impetus one way or another. China reports GDP for December, we have CPI and markit manufacturing from the US. USD/JPY levels Technically, Karen Jones, chief analyst at Commerzbank explained that intraday rallies are indicated to falter circa 118.40. "The market will find resistance at 119.85/120.65 and while capped here it will remain offered. Scope remains to extend losses towards the 116.47 support line and the 116.15 August low. The outlook is looking increasingly negative short-term and at this stage we are unable to rule out losses back to the 114.00/113.95 zone, this the 23.6% retracement of the entire move up from the 2011 low. Please note the base of the weekly cloud lies at 113.52." For more information, read our latest forex news.