The USD/JPY has been in an extended downtrend since the start of the month. Last week has observed another significant plunge. Despite the short-term bullishness the past 2 days, the prevailing sentiment is still bearish. Price is currently stalling within D L1 and D H1 at the moment.
The POC zones are 107.93-108.03 [ATR H2, ATR H1, D H3, FR 61.8 +1/8], and 108.20-30 [D H4, W H4, FR 78.6, ATR P High, Key Support Turned Resistance]. Retracement should come to a halt in one of the two POC zones, and we should be able to catch a trade with a good risk to reward.
Targets are 107.30 [D L4, ATR P Low, Weekly Open], 107.017 D L5 level and finally 106.85 [W L3, 3/8, Swing Low]
This analysis is invalidated if price decisively breaks 108.5 [D H5, FR 88.6]. Trend will turn bullish.