The USDJPY maintained a bearish momentum yesterday , topped at the 109.22 levels , and bottomed at the 107.81 levels . Now pressure will be on the key support 107.81..
The USDJPY will have to hold below the 107.81 levels on a daily closing basis to push the market for further downside losses , If seen , it will target the 107.20 levels , a halt is likely , but further losses will pave the way towards the 160.40 levels , a cut will resume the bearish move towards the 105.50 levels.
Alternatively , a failure to hold below the 107.81 levels on a daily closing basis , could mean a return to the 109.22 levels , a halt could be seen , but a break would recapture the 110.08 levels , another halt is suggested, but If this important resistance is taken out , expect the pair to extend gains towards the 111.00 levels ahead of the 112.30 levels.
In all , as long as resistance 109.22 holds on a daily closing basis , outlook in USDJPY remains on the downside towards the 107.20 levels , above 109.22 will turn outlook neutral for 110.08 levels before the next move .Note that the USDJPY needs to take out 110.08 levels on a daily closing basis to resume the upside offensive , otherwise ; a consolation is suggested below 110.08 levels before the next move !!!