As a result of USDJPY declines from June 2015, pair reached precisely in one year vicinity of extremely important support, converging with a 50% Fibonacci correction from earlier gains and a downward trend line. There supply decisively weakened and after few months of consolidation there was a very strong demand response, which led us to very dynamic growth for next three months.
Looking at weekly chart, we notice that these gains reached downward trend line and there in December was a bearish reaction. From that time we observe calm declines which appear to be only a correction before next bullish impulse.
On daily chart we will notice that correction has form of a bearish channel, from which we broke the top edge at the beginning of the month. Later gains reached vicinity of May high, where supply response occurred on Tuesday. Yesterday we also saw advantage of bears and it would seem that drops in near future will be continued. How long declines will last may depend on whether or not the upper limit of the previous bearish channel is defeated or rejected.
On M30 chart, we will notice that market has only reached nearest local resistance where first supply reaction has already occurred. A permanent rejection of this level could open the way to further declines.