Japanese yen futures completed a daily bullish harmonic pattern, a Butterfly, that has retraced to its ideal minimum target. This retracement is shallow if price cannot push higher than .009935, and a shallow retracement for a bullish pattern is a sign of weakness.
A retest of .009486 creates an important support test, because if it holds, there’s an emerging harmonic pattern that requires a push to the upside for its completion, the ideal target at .010528. But a breakdown of .009486 eliminates that scenario and focuses on an attempt to test the extended target of .009031. So .009486 is a line in the sand, harmonically speaking.
A hold above the Head and Shoulders neckline (the pink dotted trendline) implies a retest of the .09935 level, and above there puts the day chart upside targets in play.
Since the U.S. markets tend to be inverse to the yen price behavior, it’s worthy of watching to see if price moves above .009935 and the S&P Emini futures moves away from the 1846.50 to the downside, or if the yen futures moves below .009780 and the ESH14 moves above 1846.50. It is not recommended to trade one instrument based off another instrument, but confluence of bias can offer confidence or validation.