USDJPY earlier today has reached our second target at 114.60 where we also find key Fibonacci extension and key Fibonacci retracement. Our analysis on February 16th warned bulls that USDJPY was vulnerable to the downside.
Black lines -Fibonacci retracements
USDJPY has retraced 78.6% of the entire upward move from the 114.18 low and 61.8% of the entire upward move from 113.49 low. Price is bouncing off 114.50 area where we targeted the 100% extension of the first leg down. Bouncing off this area confirms that importance of the support. Technically trend remains bearish with price making lower lows and lower highs. This will change if price breaks above 115.32. Since our second target has been reached, we are now neutral.