As the fall from near 122 continues the support levels aren’t up to scratch in halting the slide. The problem with hard and fast moves, like we saw with the NFP pop is that they are liable to just as quick a correction.
There’s more minor support seen at 119.30 but it could well be 119, 118.50 or even down as low as 117.75/35 before we start finding stronger support.
USD/JPY M30 chart 09 12 2014
Pulling out to the daily chart we can see how excessive the recent drive up has been.
USD/JPY Daily chart 09 12 2014
Technically that chart scares me about where I would load up longs again. If we lose the 117 area then we could well be testing the 38.2 fib fairly quickly. At the moment we still in the grip of the fundamentals and US rate expectations and the possibility of the BOJ pumping again to prop up the economy are the likely events that will help stem the falls.
