Still, the high flying trio of USD/JPY, EUR/JPY and GBP/JPY are down more than 100 pips from their highs today, so lets take a look at where larger declines could find support.

But first, it’s way to early to call the declines today in yen crosses the start of something bigger. In all likelihood, they will get swallowed up just like every blip of yen cross selling over the past month.

USD/JPY

USDJPY technical analysis Dec 3

USDJPY daily

There is an ominous bearish engulfing candle on the USD/JPY daily chart. The first support level is 101.53, which is July high. But the Sept high at 100.61 makes more sense because it’s also the 50% retracement of the rally and dovetails nicely with the 50% retracement of the recent rally. Even a slide all the way back to 98.00 on a buyer’s remorse trade can’t be ruled out

EUR/JPY

EURJPY technical analysis

EURJPY daily with 55-dma

GBP/JPY

The first layer of support is around 137.77, which is the 38.2% retracemetn of the rally if you draw the Fibs from Nov 20. I prefer to draw from Nov 7 and that highlights a decent zone of support near 135.67. Below that, the confluence of the 55dma and the 61.8%retracement at 134.6 would be the next target.

GBPJPY technical analysis Dec 3 technical analysis Dec 3

GBPJPY daily

This pair is most in need of a retracement after a nearly 1000 pip gain in three week. My first target is the 2009, breakout high of 163.09, followed by a zone of support around 160.00.

There is a good argument for some patience here, seasonally it’s a good month for longs in these pairs. I don’t like shorting one-way momentum markets, better to wait for those dips and be ready to buy.