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  • Remains confined in a three-day-old trading range around mid-108.00s.
  • The set-up favours further near-term fall, albeit warrant some caution.

The USD/JPY pair traded with a mild negative bias through the early European session on Friday, albeit remained confined well within a three-day-old trading range around mid-108.00s.
Given that the pair has repeatedly failed to find acceptance above the very important 200-day SMA, the bias seems tilted in favour of bearish traders and support prospects for further declines.
The near-term negative outlook is further reinforced by the fact that the pair has been drifting lower along a descending trend-line, which should keep a lid on any attempted recovery move.
Meanwhile, technical indicators on the daily chart haven’t been supportive of any firm direction and warrant some caution before placing any aggressive bearish bets amid mixed trade headlines.
Conversely, a sustained move beyond the trend-line resistance, currently near the 108.80 region and a subsequent breakthrough the 109.00 handle (200-DMA) might negate the bearish bias.

USD/JPY daily chart