The USD/JPY is a key currency for risk sentiment as it is the primary signal for carry trade. $USDJPY, Usd/Jpy / 1440 As markets have continued their risk aversion theme throughout 2014, the USD/JPY has headed south, and today made an important break of a key pivot at 101.70. This was support going back to early December. Having been broken the chances that it extends down towards next key levels around 100.50 and 99.60 increase. We can also slap a few downward sloping trendlines around recent price action and see that the pair is in a downtrend, with lower lows and lower highs. A retrace to 101.70 would be a level for fresh shorts to pile on.The Nikkei has been a real poor performer during the year, and we should continue to watch how the correction there progresses as this week goes on.