USD/JPY: market will now look for 108.12

USD/JPY Current price: 109.06

The USD/JPY pair plunged to a fresh 4-month low of 108.72 as an immediate reaction to US inflation readings, but bounced quickly afterwards, holding however, below its daily high of 109.25. The bounce was triggered by stocks´ reaction to the news, as after being under pressure for third consecutive days, equities managed a shallow bounce. Nevertheless, Wall Street is set to open in the red, as risk sentiment persists, while for the pair, the risk remains towards the downside, as safe-havens are still on demand while US data is anything but dollar's supportive. The 4 hours chart shows that the price remains far below bearish moving averages, whilst technical indicators are resuming their declines within bearish territory and after correcting extreme oversold conditions, in line with further slides ahead  on renewed selling interest below 108.80 the immediate support. If the level gives up, the next probable target is 108.12, this year low set last April.

Support levels: 108.80 108.50 108.15

Resistance levels: 109.30 109.70 110.10

View Live Chart for the USD/JPY 

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