USDJPY - Watch 122.4 - 122.6 for new short positions

122.4 - 122.6 marks the previous support level that was broken which saw prices dip to the lower resistance turned support near 121.42 - 121.31. The bounce off this new support (121.42 - 121.31) is likely to see a retracement back to the previous support which could now be tested for resistance.

If prices fail to break above 122.6, then another leg of declines are likely, targeting 121.42 - 121.31 followed by 120 eventually. A break above 122.6 - 122.4 will then see a new leg of rally to the upside.