- USD/JPY seesaw around the three-week low.
- 50-day EMA, rising trend line since late-August limit immediate declines.
- 61.8% Fibonacci retracement level seems the key resistance.
Despite declining to a three-week low, USD/JPY fails to extend the south-run as its nearness to the important technical indicators. The quote trades around 108.00 by the press time of pre-European session on Friday.
The pair needs to close beyond 107.95, comprising the lower-end of 50-day Exponential Moving Average (EMA) and medium-term rising support line, to extend its latest drop and revisit October month low nearing 106.50.
However, 38.2% Fibonacci retracement of April-August declines, at 107.52, can offer an intermediate halt during the downpour.
Alternatively, intra-day traders may keep looking for a bounce if prices increase over 50% Fibonacci retracement level of 108.45.
In doing so, the recent high around 109.30 and 61.8% Fibonacci retracement level of 109.40 will be their major challenges while aiming late-May high close to 110.70.
USD/JPY daily chart
Trend: pullback expected
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