USDJPY fell for a third day on Monday to find support at the short-term Fibonacci of the rally from 116.86 to 120.47. This support level comes in around 118.24. The 21-day moving average also provided support.
The recent rebound to the high of 120.47 hit on February 11 is likely finished and the near-term bias has shifted back to the downside. This is also indicated by the RSI which has fallen back towards the 50 line.
A break below the 61.8% Fibonacci would target the next Fib level at 117.65.
To the upside, a break of 120.47 could lead to a retest of the December high of 121.84. A break above this would confirm the larger uptrend.
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