USD/JPY technical analysis: Plummets to fresh weekly lows, below 200-hour SMA post-US ISM PMI

• The USD/JPY pair witnessed a dramatic intraday turnaround from six-week tops and tumbled fresh weekly lows, below mid-108.00s in the last hour.
• Break below the mentioned support – coinciding with 200-hour SMA, was seen as a key trigger for intraday bearish traders post-softer US ISM PMI.

Meanwhile, technical indicators on hourly charts have been drifting sharply into the negative territory but have still managed to hold with a mild bullish bias on the daily chart, warranting caution for aggressive bearish traders.

Hence, any subsequent slide might still be seen as a buying opportunity and attract some dip-buying interest near the 108.25-20 horizontal support, which should eventually help limit the downside near the 108.00 round figure mark.  

On the flip side, the 108.65-70 region now seems to act as an immediate resistance and is followed by the 109.00 round figure mark, which if cleared might negate any negative bias and set the stage for a further near-term appreciating move.

A subsequent move beyond intraday swing highs, around the 109.30 region, now seems to assist the pair to aim towards reclaiming the key 110.00 psychological mark before eventually darting to challenge the very important 200-day SMA near mid-110.00s.

USD/JPY 1-hourly chart