Bearish Despite Recovery Attempts…
The outlook in USDJPY has turned neutral with risk to the downside. Resistance comes at 106.05 levels. Above 106.05 will extend the corrective recovery to 106.70. Above 106.70 aims the 107.45 level ahead of the 107.85 level.
Alternatively, a failure to break and hold above 106.05 levels could mean a return to 105.00 level where a cut will aim the 104.25 levels. Below 104.25 restores the downside momentum and paves the way to 103.25, further down, support comes in the 102.25 levels.
In conclusion: The USDJPY remains exposed to the downside below 106.05 levels…
Support: 105.00, 104.25, 103.25, 102.25
Resistance: 106.05, 106.70, 107.45, 107.85
Key/data events which may affect USDJPY today:
- U.S ISM Non-Manufacturing PMI (Jul) at 14:00 GMT.