The USDJPY has taken out the 1:1 (Pink) and 50 Fibonacci level during yesterdays trading session opening up the market for a much larger correction. The market initially fell over a 150 pips but has taken back a large portion of yesterdays losses today.
USDJPY H4
Moving down to the 30 minute chart there is an important 1:1 (Blue) that the bears will be closely eying, the stochastic is also overbought which will add further weight to the level. If some solid selling is seen against this level a push for yesterdays lows will likely be seen in the sessions ahead.
However any failure to send the market lower from here and we are likely to see some further short covering take place.
USDJPY M30
* A 1:1 refers to a current correction being equal in length to a prior correction
