Ella 
Yesterday, we believed that USD/JPY “has room to test 146.50” and we also believe that “the main support level at 146.00 is unlikely to be threatened. A strong rebound from oversold conditions suggests that further weakness in USD/JPY is unlikely. Today , USD/JPY is more likely to trade within a range, with a possible trading range of 146.00-147.30.
Outlook for the next 1-3 weeks: After last Friday’s sharp decline in USD/JPY, we highlighted yesterday (September 11th when the price was 147.10) that “the current price action may be part of a consolidation phase. We added:” Looking ahead, if USD/JPY falls significantly below 146.00, it could trigger a sharp correction in USD/JPY. While we would prefer to see USD/JPY close below the 146.00 support, the overall price action suggests that USD/JPY may fall further back to 145.50. At this stage, it is unlikely that USD/JPY will fall significantly below this level. On the upside, if USD/JPY breaks above 147.80, it would suggest that it is not ready for a further pullback.
