There was a rollover in US equities with the S&P Index loosing over 18 points, creating the first losing first day of the year since 2008. The yen futures spiked during the equity downturn, and the squeeze higher continues during the Asian trade with the yen up .56 percent, currently. The Nikkei has declined over 450 points as trader’s are heading into safe haven assets.
The dollar was higher on the day, yesterday, during the fall of risk assets (equities, Sterling, euro..) and currently down modestly in early trade, -.12 percent. The large spike in the yen is causing the USDJPY to decline rapidly, down 55 pips after falling over 70 pips during the last session. The dollar can remain stable, but if traders continue to pile into the yen, the pair has quite a bit to fall.
Price action is pushing against the nearest support at 104.28 and the 72 EMA. Support is likely to break as risk assets are avoided. The target, in the short-term, for the USDJPY is 103.75. This could provide some support, but a fall to 103.30 is supported, technically.
Look for a pullback to 104.35/45 if the current 4H candle cannot close below support.