USDJPY: Recovery Mode Sets In…
As long as 104.70 support holds on a daily closing basis. The USDJPY remains in a recovery mode and further upside couldn’t be ruled out. Resistance comes at 106.05 levels. A break will extend the corrective recovery to the 106.57 levels. A halt is likely, it may test 106.05 before attempts to break above 106.67. However; above 106.57 aims the 107.20 levels.
On the downside, support comes at the 105.30 levels. Below 105.30 turns the focus to 104.70. It may turn higher from here. Below 104.70 will terminate the recovery mode and suggest a lower leg below 104.17 levels.
In Conclusion: The USDJPY sees recovery threats above 104.70 levels…
Support: 105.30, 104.70, 104.17, 103.05
Resistance: 106.05, 106.57, 107.20, 107.95
Key data/events which may affect USDJPY today:
- U.S PPI (MoM) (Jul) at 12:30 GMT.