The 1:1 (Light blue) and 50 fib that coincide at 118.00 is likely on the radar of the Elliott Wave and Gann fraternities. This level is the largest correction in this current move lower and will offer an excellent trading opportunity in the near future.
The opportunity will come if we see the bears take back control at this level in which selling intraday rallies will be the best play, however a break of this 1:1 will see the bulls continue to push this market higher as they look to target large stops above 120.900 in this case buying intraday dips will be the preferred play.
Intraday USDJPY has continued to head higher on profit taking with a number of 1:1 dips offering good trading opportunities during the NY session.
The 38.2 fib has offered solid support with the days high now coming under attack, if the intraday players fail to take out the days high look for further support on the 1:1 (Purple) and Line in the sand (Yellow). However a break back through the line in the sand (Yellow) will see momentum pick up on the downside.
* A 1:1 refers to a current correction being equal in length to a prior correction