USDJPY STILL BEARISH BELOW 108.98 LEVEL
The U.S dollar remains on the back foot against the Japanese yen in early week trading, despite a return to risk-on trading sentiment in the broader market. The USDJPY pair is currently range-bound between the 108.50-70 region, as traders remain cautious ahead of the release of preliminary fourth quarter GDP numbers from the Japanese economy. Heading into today’s U.S trading session, downside pressures are likely to prevail whilst the pair trades below the key 108.98 level.
The USDJPY pair remains intraday bearish while trading below the 108.98 level, key downside support is located at the 108.28 and 107.80 levels.
Should the USDJPY pair start to trade above the 108.98 level for an extended period, we may see a correction back towards the 109.30 and 109.78 resistance areas.