USDJPY: Recovers, Eyes On The 109.88 Levels…
As long as 108.65/109.25 support holds on a daily closing basis. The USDJPY remains in a recovery mode and further upside couldn’t be ruled out to 109.88 levels. A halt is likely, it may test 109.25 before attempts to break higher ( or it may top around 109.88 levels). Anyway; above 109.88 aims the 109.30 levels, further upside, resistance comes in the 110.78 levels.
On the downside, immediate support comes at 109.25 – broken resistance turned support- ahead of 108.65 levels (main). Below 108.65 will restore the downside momentum and aim the 108.27/107.85 levels. The next support comes in the 107.45 level.
In conclusion: The USDJPY faces recovery threats above 108.65/109.25 levels…
Support: 109.25, 108.65, 108.27, 107.85
Resistance: 109.88, 110.30, 110.78, 111.15
Key data/events which may affect USDJPY today:
- U.S ISM Non-Manufacturing PMI (Jan) on Wednesday at 15:00 GMT. The forecast is to rise by 55.1, from 55.00 a month earlier.