USD/JPY has bounced back to the 108.85/80 level as I write. If we continue higher, look for first resistance at 109.10/14. Being so oversold, it may be risky to try shorts here, but if you do then use stops above 109.35. Next target for the recovery is 109.65/69, then stronger resistance at 110.00/10. Try shorts with stops above 110.50.
Below 108.44 signals continued weakness and re-targets 108.05/00 before yesterday's low at 107.67. We are severely oversold but with no sign the sell off has ended, a break below 107.55 today targets longer term Fibonacci support at 106.75/65. This is where it starts to get risky running shorts any further.