Karen Jones, analyst at Commerzbank, explains that USD/JPY has sold off to and so far reversed from the 104.51/10 January low and the 2013-2019 uptrend and this support is reinforced by the 200 month ma at 104.44.

“Currently we have few clues how far the bounce will extend, however interim resistance is the 107.21 18th July low and the market remains capped here. A recovery above here is needed to alleviate immediate downside pressure. This guards the 108.99/109.32 recent highs. Failure at 104.10 would target 99.00 the 2016 low, but for now we would allow for consolidation and look for the market to hold at circa 104.50/10.”