The USD/JPY has been recovering from the huge drop caused by a flash crash where Yen has gained an immense boost during low liquidity trading. The POC zone has been formed.
108.45-60 is the POC zone and we can see a lot of confluence there. If the price keeps rejecting the zone and holds below, the trend line (blue retracement trend line) will be endangered. A drop below the trendline (app 107.75) should target 107.25 and eventually 106.25. However, a close above 108.70 will open the way to 109.37.
Watch for POC zone and/or a trend line break and H1/H4 candle close below that would signal additional bear strength.
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Many green pips,
Nenad Kerkez aka Tarantula FX