I continue to favor the downside against 98.46. The long term trend remains down and I expect a resumption of that trend. The drop beneath trendline support last week bolsters the bearish case. A short term bearish targets has been hit at 96. The USDJPY is currently testing the low side of a short term channel and intraday studies are divergent and oversold. Bounces should be capped by 97.45. Keep the big picture in mind though; price is below the 200 day SMA (which is sloping down) and RSI not yet oversold. Bearish potential is significant.
