Yesterday's low (2) came in at 10477.3 for the USD/JPY placing it squarely inside the historic support zone (1), a slight recovery into the close printed 10496.4 a few pips shy of the 10500 handle. During this morning's European session, we're not seeing much of a rebound off these lows, currently holding just above the 10500 level at the time of writing. The longer-term picture doesn't look promising either with lower swing highs closing into support, suggesting any rally off these current levels will most likely run out of steam.
This currency pair could experience heavy selling pressure if we convincingly break below support (1) which could see prices fall to 10360/90s with 10120/45 in extension (short-medium term).
If support holds, the bulls will need to get well inside the 106 region, in order to give themselves a fighting chance.
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