The price action of the USDJPY is currently transitioning from the previous ascending channel into a newly emerging descending channel.
The Stochastic RSI indicator demonstrates that the underlying selling pressure has already climaxed, which could catalyse another bullish rebound. If the price action manages to penetrate back above the 61.8 per cent Fibonacci retracement level, its next likely target would be the 38.2 per cent Fibonacci.
Conversely, a potential consolidation below the 61.8 per cent Fibonacci could be followed by a subsequent dropdown to the previous swing low at 108.800.