- The USD/JPY pair failed to capitalize on its early uptick and has now retreated back below the 108.00 handle, towards the lower end of its daily trading range.
- The pair is hovering around the 107.85-80 support area – 50% Fibo. level of the 106.78-109.00 move, which should act as a key pivotal point for intraday traders.
With technical indicators on hourly/daily charts struggling to recover from the negative territory, a follow-through selling will reaffirm a near-term bearish bias and accelerate the slide towards mid-107.00s.
The momentum could further get extended towards the 107.15 intermediate support before the pair eventually breaks below the 107.00 handle and aim towards retesting multi-month lows, around the 106.80-78 region.
On the flip side, the 108.10-15 region – nearing 38.2% Fibo. level, now seems to have emerged as an immediate resistance, above which a bout of short-covering might lift the pair towards challenging the 108.55-60 supply zone.
A convincing break above should negate any near-term bearish bias and set the stage for a possible move back towards reclaiming the 109.00 round figure mark en-route the next major hurdle near the 109.30 area.
USD/JPY 1-hourly chart
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