The dip was anticipated (see "Channel Support for USDJPY at 124.50 and 123.00") and reached:
1) of wave iii
2) Equal wave measurement from the June 5 high to this morning's low
As a result, we have a tradeable low back towards 124.75-127. A move above 123.85 creates overlap (see purple dotted line) and seals in an equal wave pattern from the June 5 high. Equal wave patterns tend to be fully retraced.
Note the 2 higher probability options in the notes on the chart. The 2nd option leads to a very large top (see "How Much Juice is Left in USDJPY Bulls?")
There was a study I saw a couple weeks back that US data disappointments are driving USD weakness more than data strengths leading to gains.
That is what I like about these hot spots on the chart - something gives so it provides good RR trades. Thank you misterpeebles.