It seems we have a fight going on here between AUD/JPY and EUR/JPY. The former market has been very long and is now bailing out. The latter market is short and is starting to cover. My thinking is that the EUR/JPY positioning is greater than that in the AUD/JPY and therefore the overall net effect for USD/JPY should be buyer-positive. In other words buying dips is the way to play it from an intraday perspective.
There is some fairly solid support in AUD/JPY around 76.00 but a clean break below targets 70.70.
EUR/JPY remains bearish but the failure to re-test 110.50 opens up the possibility of a short-covering rally back towards 118.00.