Red lines- Bearish channel

Blue lines- Fibonacci extension targets

USDJPY has finally reached our next target after 140, which was 135-134. We have updated our wave count because the RSI made a new lower low and this most usually happens with the 3rd wave which by theory is the strongest. With the Non-Farm payroll just announced, Dollar is getting supported by buyers and USDJPY and is most probably starting wave 4 towards the upper channel boundary around 138-138.30. As long as price is inside the bearish red channel, we will be expecting to see a lower high and then a new move lower towards 130-128.