The USDJPY decline from 107.75 could be the beginning of a 3rd wave within the decline from 108.57.
Bigger picture, the advance from 95.72 is in 3 waves (A-B-C). Wave C is nearly 61.8% of wave A, a common relationship. The pair has broken the support line shown above and held below the 200 day SMA. We wrote yesterday to “look for resistance as high as 106.75/107.00; the former trendline and a congestion zone.” The USDJPY spiked into 107 yesterday and is pressuring the figure again this morning. If the bearish bias is to prove correct, then price needs to fall before 107.75.
STRATEGY: Bearish, against 107.75, targets 101.97 and below