Bias tilts lower
The USDJPY tilted more to the downside after the bull pennant gave way. The stock markets reversal and US yield fall is also helping to sour the sentiment for the pair (see earlier post outlining the technical levels of importance) .
The low has been able to find support at the 111.68. That is the 50% of the move up from the last floor against the 200 day MA (from late Thursday). A move below that level (with momentum) would tilt the bias further to the downside. A move below could then see traders looking down toward a retest of the 100 day MA at 111.414 area.
Stocks are a concern.
The S&P stalled at the ceiling going back to October (see post here) and the Nasdaq gapped to new highs (and above ceiling levels) and is now down below the 50 hour MA. The 100 hour MA is key below at 7488 area (see post here). More weakness would hurt the USDJPY in the process.