Daily Pivots: (S1) 109.97; (P) 110.26; (R1) 110.53; More..
USD/JPY dropped to as low as 110.13 so far and there is no sign of bottoming yet. The break of 38.2% retracement of 104.62 to 114.54 at 110.75 and current downside acceleration now increases the chance of bearish reversal. Intraday bias is stays on the downside for 109.76 support next. Break will target 61.8% retracement at 108.40. On the upside, break of 111.46 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish even in case of recovery.
In the bigger picture, price actions from 125.85 (2015 high) are seen as a long term corrective pattern, no change in this view. Apparently, such corrective pattern is not completed yet. Break of 109.76 support will start another medium term down leg to 98.97/104.62 support zone. ON the upside, break of 114.73 resistance will likely extend the rise from 98.97 through 118.65 resistance.