$USDJPY Morning Commentary

$USDJPY plunged to a new low for the year on Wednesday as it renewed the decline off September's high. The low-range close sets the stage for a steady to lower opening when Thursday's night session begins trading. 

Stochastics and the RSI are diverging but turning neutral to bearish signaling that additional weakness is possible near-term. If March renews this fall's decline, March's low crossing at .12000 are the next downside target. Closes above the reaction high crossing at .12253 are needed to confirm that a short-term top has been posted. 

First resistance is the 20-day moving average crossing at .12206. 

Second resistance is the reaction high crossing at .12253. 

First support is today's low crossing at .12015. 

Second support is March's low crossing at .12000.