Friday up day broke 8 day fall.
The USDJPY was higher in trading on Friday. That was the 1st up day in 8 for the pair. The high reached 111.48 - short of the 111.56 target at 111.58-61 area (swing lows from February). The price tested that level on Tuesday and held support. It fell below on Wednesday and close below. On Thursday, the level was tested as resistance this time, and held. Friday's traders used the level to lean against. Today we are moving further away. The low today has reached 110.10 so far (see daily chart below). Looking at the daily chart, the next key target is down at 109.373 is the 50% of the move up the September 22 low. Sellers remain in control. The price has not traded this low since November 18th.
Looking at the hourly chart, the corrective move on Friday could only get up to the 382.% of the move down from the week's high. That was not all that great. The pair did move above the topside trend line but momentum was limited.
Today, the price has stayed below that topside trend line (currently at 110.68). It is now a reestablished resistance level.
Drawing a trend line off lows from last week, shows that the price has moved below that trend line and stayed below in trading today. That line comes in 110.348 now. That level should be close risk for shorts now - technically.
Much of the decline is in reaction to lower stocks today. The stock market is getting ready to open. We will see if the sellers keep the downside pressure going after the healthcare failure on Friday.