Following the US Non-Farm Payrolls report, the yen was immediately bought versus the dollar with the USD/JPY falling to its lowest level in one month. However, shortly after the data release the pair came off of its lows to trade as high as 82.45, squeezing many traders who were short on the pair.
As the pair sold off earlier in the session, the USD/JPY reached the bottom channel line of the downtrend and reversed its direction a full 180 degrees. A move below the channel line will target the 2011 low of 80.90. Resistance is found in a range between the early December low of 82.30 and Friday's high of 82.50. Further resistance is located at the falling trend line off of this year's highs. The levels of 83.70 and 84.50 also stand out.