The USD/JPY has been captured within the descending channel and at point the channel bottom has been reached. The pair could bounce or breakout lower.
In the case of retracement, pay attention to POC zone 106.16-28 as the price could reject from the zone towards lower levels. In the case of POC rejection, watch for 105.99 and 105.70.
However the break below 105.55 will make the ATR overshots the projected low and the price might get to 105.09 during this day. 105.09 is a strong level and traders might try to place some long scalps there towards 105.55 retest.
Nenad Kerkez aka Tarantula FX