Moves lower after the ADP report
The USDJPY has moved to the lowest level since May 26 after the weaker than expected ADP report has sent US yields lower, stocks lower, gold higher, crude oil lower and the USD lower as well.
The pair has now reached down to 108.75. Looking at the 4 hour chart above the next target area comes in between 1.0859 and 1.08654. That is home to a number of swing lows going back to mid May (see red numbered circles). Those lows based the pair before starting the run to the upside that saw the USDJPY peak in early July at 111.653.
Since at high, the price has chopped lower. The most recent corrective swing high from June 23 reached 110.583. The pair moved above and below the 100 day MA between July 29 and August 2, when the pair started to break more to the downside.