Last week, USD/JPY broke below 150 for the first time since last December. It has firmly broken out of the multi-month uptrend that saw it move from circa 140 in September up to 159 in January.
There are valid reasons for the pivot lower, but with it now at key support in the 149-150 region, the next move from here is pretty key. A material break lower puts 140 back on watch, while a bounce off this level would see some call it a double bottom and look for a move to 156/157 as a potential head and shoulders pattern forms.
Today, we run through our take on how powerful the drive lower could be, as well as sharing ways to express this view (no easy feat, as those in the JPY deriv space will appreciate..).