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USD/JPY Might Start Establishing Support Around the 2015-Low

The USD/JPY has been falling sharply, along with the US stock market. Since stopping at 125.85, the pair has double topped and fallen sharply back below 116 and tagged the low on the year. 

USD/JPY Daily Chart 8/25
(Click to enlarge)

This violent swing signals capitulation after a few years of run up. However, in the short-term, the market might stall around the 115.50-116 area. The idea is that the USD/JPY might have turned sideways, but might not be bearish in the long-term. I would not touch this pair for now. 

If USD/JPY slides back towards 116 but then forms a price bottom in the 1H/4H chart, then I would start considering buying on a dip. The upside however should be limited to 122, with a more conservative limit at 120 and the first key pivot at 118-118.30.