USDJPY’s downside movement from 110.67 extended to as low as 107.31. Resistance is at the bearish trend line on the 4-hour chart. As long as the trend line resistance holds, the rise from 107.31 could be treated as consolidation of the downtrend and further decline to 106.50 area is still possible after the consolidation. On the upside, a clear break above the trend line resistance could signal completion of the shot term downtrend from 110.67, then the following correction rebound could bring price to 110.00 area.
