Still needs to get below key floor support
The USDJPY has been able to stay below the broken trend line at the 119.40 level (the corrective high got to 119.24), and the price has moved to new session lows (118.67). The low from September at 118.51 and the key floor area at the 118.22-508 looms ahead if the pair is to continue the break and run. On the infamous "Dow down 1000 day" the pair tumble below this area but then reestablished support in this area on the next two subsequent days.
The pair is now correcting off the lows and moves to test the 119.00 level again. The market is reacting to the ebbs and flows from the stock market. The S&P index reached to a low of 1893 but is back above 1900 (at 1904 currently). Trading becomes difficult if the pair is trading off stocks, but overall, the stock market is vulnerable (slower China/slower US potential). It should keep a lid on the pair.
