Ella 
We did not expect USD/JPY to fall sharply to lows of 141.54 (we expect USD/JPY to trade in a range). Downward momentum started to improve. USD/JPY is at risk of further weakness today. However, any decline above 140.80 is unlikely (next target at 140.00). Initial resistance is seen at 142.25, then at 142.75.
Last Friday (August 4th, when the price was 142.70), we pointed out that the upward momentum started to deteriorate. We added that “the probability of USD/JPY rising to 145.00 is decreasing.” In New York trade, USD/JPY fell sharply, breaking below our “strong support” level at 142.00 (low at 141.54). A break above a “strong support level” suggests that the recent build-up of upward pressure has abated. USD/JPY is now likely to trade within a wide range of 140.00/143.30.
