USDJPY got rejected at 110.50 and is now trading below 110 again. Price has formed a lower high and a rejection after back testing the red trend line. USDJPY has potential to break below recent lows 109.10-109 as long as price is below 110.50.
Red line - support (broken) trend line
The 38% Fibonacci retracement level is our first pull back target. Around 108 we see the first important support to be tested. USDJPY is in a bearish short-term trend despite the bounce to 110.50. Support is found at 109 and breaking below it will open the way for a bigger decline.
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