USD/JPY dips to three week low on Monday and hit Fibo 76.4% retracement of 141.68/149.40 corrective upleg, adding to signals that correction of larger downtrend is close to its end.
Strong drop last week (2.1%) completed a bearish engulfing pattern and registered weekly close below 100WMA (144.59), generating fresh bearish signal and setting scope for retest of 141.68 (August 4 low, the lowest since late December).
Bearish technical and fundamental studies contribute to growing signals that USDJPY may extend losses after completing correction.
Break of triggers at 141.68 and 140.48/25 (Fibo 61.8% of 127.22/161.95 / Dec 28 low) likely to spark fresh acceleration lower and dips below psychological 140 support.
Res: 144.58; 145.04; 146.27; 146.87.
Sup: 143.44; 142.58; 141.68; 140.48.
