As of Thursday 2PM EST, the USD/JPY looks to be putting-in the 6th straight down day, while the pair is seemingly consolidating Wednesday's big risk-off day. Thursday's price-action in the dollar/yen hints of a temporary bearish exhaustion while global markets have seemingly been caught off-guard by the rapid weakness in equity markets.
Technically, this one week downswing falls into the typical correction variety, which is a 25% retracement or in other words, a one-quarter price retracement of gains since late March, where this bullish drive originated. While, this is normal for a struggling advance that had been showing signs of a struggle in momentum and had recently exhausted, the speed of the latest down move hints of a potential re-test of key 100-day moving average support at 111.23.
