USDJPY remains vulnerable.

As explained in our latest USDJPY post, we expect price to move lower towards 109 and below. Recently price got rejected at the back test of the broken trend line. This was a bearish signal.

Red line -support (broken)

Blue lines - Fibonacci retracements

USDJPY is making lower lows and lower highs. Short-term trend has changed to bearish and I continue to expect price to move lower at least towards the 38% Fibonacci retracement support at 108.20. At 110.60 we have major resistance and as long as price is below this level, we expect price to continue lower.