USDJPY STRONGLY BEARISH BELOW 107.29 LEVEL
The U.S dollar remains under heavy selling pressure against the Japanese yen on Wednesday, with price-action earlier hitting a new five-month trading-low, at 106.89. The USDJPY pair is now consolidating ahead of key U.S data around the key 107.29 level, which marked an important trading low back in September 2017. Traders now look towards the U.S January CPI inflation report, with any upside surprises in inflation likely to give the U.S dollar index a boost.
The USDJPY pair remains strongly bearish while price-action trades below the 107.29 level, further downside towards 106.89 and 106.60 appears likely.
Should the USDJPY pair start to hold above the key 107.29 level for an extended period, we may see a upside correction back towards the 107.84 and 108.40 resistance areas.