In our morning preview I spoke about how the Yen was poised to test 110.00 and then ideally move to the next support level at 109.50.

Sure enough we were able to hit our first target, helped by some largely positive trade data that was released at the open of equity markets.

Overnight the FOMC minutes put pressure on the USD/JPY. The US currency was weak across the board and this morning's data only added to the sell-off.

The Technical Picture

110.00 was our key level today. That got taken out early and now I want to see it now act as resistance. If it holds then we stand to make another leg lower as we move into the European session.

The round numbers of the USD/JPY have been powerful over the last week with price getting sucked towards them.

I’ve found that we can use these round numbers as levels to key off – like support and resistance, or as targets that we can use to take profits.