[B]Commentary:[/B] We continue to favor the downside in the medium term. Very short term, the USDJPY may test the 38.2% of 122.43-118.01 at 119.70. The 7/25 low at 119.81 defends this level.
Keep an eye on the support line, drawn off of the May 2006 and March 2007 lows. A sustained break of this level would be a strong signal that the USDJPY is headed much lower, towards 117.60 and potentially 115.14.
[B]Strategy:[/B] Sell bounce to 119.30/80, against 120.97, target 1 is 117.60