The USDJPY looks to have bonced off the low it created at 84.72 to close at 86.16. The price is now approaching and testing the 21-day SMA. I would consider to buy if the price is able to break the 21-day SMA with either candlestick pattern, MACD or other indicator for confirmation of buy entry.
From the daily chart, the Dollar-Yen look quite over sold and I am not expecting the declines below 84.80 lows to be sustained. On the other hand, I am expecting once 84.80 is broken out, the Dollar-Yen is ready for a major upside corrective move. This corrective move (or retrace) could be seen as a necessary move before the Dollar-Yen resume its long term bearish move.
