The move lower today in USD/JPY was not something the bulls want to see. First of all, we could not put a finger on a reason for the move. Additionally, we are challenging triangle support from the March spike lows. Some traders may see a head-and-shoulders pattern (red). Personally, I don’t like head-and-shoulders patterns that are not signalling a trend reversal, but I know some may be viewing it this way. However, what I will be watching carefully will be the 104.00 level, which has held strong as support all summer. A break of the 104.23 would be bearish since this is the trend line and 88% retracement of the September lows to recent highs is there.
USD/JPY Daily Chart.