USDJPY H4 - potential further declines

As a result of yesterday’s declines USDJPY has overcome important support at 110.30. If declines are continued we would expect to close previous bullish gap and perhaps even re-test 108.25 area. It is worth noting that yesterday’s support was still not tested from the bottom (as a resistance) and now coincides with the 38.2% Fibonacci correction from previous falls. If it happens this re-test would be the best opportunity to join the declines. If market beats yesterday’s minima- falls could continue without any upward correction. In short term, therefore, it is worth considering short position on this instrument.