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FxWirePro: USD/JPY edges higher from fresh multi-month lows at 107.63, finds strong support at 107.60

  • USD/JPY remains with a bearish bias, has hit fresh multi-month lows at 107.63.
     
  • The pair finds strong support at 107.60, breaks below could see further weakness. Tests of 106.80 and then 106.25 then likely. 
     
  • Concerns rise over intervention risk, but we think this is politically very difficult to do ahead of the G7 meeting scheduled next month.
     
  • Immediate resistance and support are located at 108 and 107.60.
     
  • Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-under-extreme-selling-pressure-test-of-10750-likely-190799) has almost reached target at 107.63.

Recommendation: Book full profits. We see further weakness only on breaks below 107.60
 

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