USDJPY: Bearish Despite Recovery Attempts
The outlook in USDJPY has turned neutral with risk to the downside. Support comes at 107.80 levels while resistance comes at 108.50/108.85 levels. On the upside, the USDJPY will have to break and hold above 108.50/108.85 levels on a daily closing basis to prevent the market from a return to the downside. If seen it will target 109.48/109.72 levels. A break will pave the way to 110.15 levels.
Alternatively, a failure to hold above 108.85 levels on a daily closing basis could mean a return to 107.80 levels. Below 107.80 aims 107.50 level. The next support comes at 107.20/106.80 levels.
In conclusion: The USDJPY sees consolidation move below 108.85/105.50 levels.
Support: 107.80, 107.50, 107.20, 106.80, 106.50
Resistance: 108.50, 108.85, 109.48, 109.72, 110.15