USDJPY: Recovers With Caution, Tests Key Resistance 108.85
The outlook in USDJPY remains neutral but with a potential to break higher. Support comes at 107.80 levels while resistance comes at 108.50/108.85 levels. On the upside, a sustained breakout – daily closing- above 108.85 will extend the corrective recovery to 109.48/109.72 levels. A break will pave the way to 110.15 levels.
Note: a failure to break and hold above 108.85 could mean a return to 107.80 levels.
Alternatively, a failure to break and 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 recovery threats above 107.80 levels with caution…
Support: 107.80, 107.30, 106.65, 105.95, 105.40
Resistance: 108.50, 108.85, 109.48, 109.72, 110.15