If you have read my previous analysis of USDJPY, you know that I was expecting a move to 107 again.
Yesterday's candle made a bearish engulfing as well as a stop grabber.
ABCD100 coincides with FIB38.2, that is the target.
Sell entry at 30% retracement of recent move down.
Setup will be invalidated if any daily/D1 candle closes above yesterday's high.
Fundamental factors that support bearish move: 1. USD/JPY rally flounders; US data disappoints, global recession fears return 2. Undermined by worst US manufacturing data in a decade, US yields lurch lower 3. Fed easing chances increase sharply to 75bps of cuts by Jan 2021 4. USD downside limited, higher chances of BOJ easing negate Fed expectation 5. Weak Japan confidence readings may spur BOJ to act