USDJPY: Still Faces Corrective Pullback Risks…
As long as 110.08/110.30 resistance holds on a daily closing basis. The USDJPY remains in a pullback mode and further downside move couldn’t be ruled out to 109.60 levels. Immediate support stands at 109.60 levels. A halt is likely but a cut will aim the 109.25 levels, further down, support stands at the 108.65 levels.
The USDJPY will have to break and hold above the 110.08/110.30 levels to prevent a return to the downside.
On the upside, resistance stands at the 110.08/110.30 level. A break above here will extend the bullish move to the 110.80 levels. We might see hesitation, but a breakthrough 110.80 will turn the focus on the 111.40 level ahead of 111.80 level.
In conclusion: The USDJPY remains exposed to the downside below the 110.30/110.08 levels with caution…
Support: 109.60, 109.25, 108.65, 108.27
Resistance: 110.08, 110.30, 110.80, 111.40