USDJPY Struggling To Sustain

After dropping to nearly 1-month low level of 106.37 during early trade, the USDJPY staged a minor recovery to 107.18 but failed to sustain and is currently trading back below 107.00 handle. Downside risks remain. Below 105.5, 104 will be the next clean target. BoJ officials talking down the Yen in early Asian session today. H4 closed in a doji with a bullish follow through. Yellen on tap later this evening. Above 107.665, 110.968. Current levels good to build longs, but watch for 104 downside risk. 116.5 – 116.0 is the level to watch to the upside (Forex Indicators).

Forex Indicators

USDJPY Rally Forex Indicators

The market has eroded 107.80 – the 78.6% retracement. This is considered to be the last defence for the 106.55 recent low and 105.40 2014 peak (Forex Indicators).

Forex Indicators

 USDJPY Bullish Bat Pattern

On the immediate downside, bulls will try and defend 106.50-45 support region, which if broken now seems to open room for an immediate drop back towards 105.55-50 support ahead of 105.00 round figure mark support.

Forex Indicators

USDJPY Daily Range

The USD/JPY tumbled after official report showed US job growth decelerating sharply to show an addition of meager 38,000 jobs in May. The fall got aggravated below 107.00 handle, as the US ISM non-manufacturing PMI for May also fell short of consensuses expectations and dropped to print its weakest reading since Feb. 2014. Range developing between 106- 111, opportunities for both sides to play the range (Forex Indicators).

Forex Indicators

Technical Levels To Watch

On the immediate downside, bulls will try and defend 106.50-45 support region, which if broken now seems to open room for an immediate drop back towards 105.55-50 support ahead of 105.00 round figure mark support.

Forex Indicators

While we still consider these to be key support for the market, it is clearly going to take some time to recover, for now we suspect further weakness to test these supports and intraday would exit rallies to remain capped 107.50/108/25

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