The USD/JPY pair has been under bearish pressure since the 30th of May 2016, with the sellers leading the price from as high as 111.44 to as low as 108.83.
The major fell sharply on Wednesday hitting the intraday low of 109.06, but gained traction during the North American session on risk aversion. Today, the pair initially fell to the session low of 108.83, but registered a minor recovery to currently trade at 109.17. The risk-off sentiment continues to underpin the safe haven yen. In addition, diminishing expectations of a June U.S. rate hike and concerns over the global growth seem to affect the pair.
In the event that the price breaks below the session low of 108.83, the pair could find support at 108.66 and 108.45 respectively.
On the flip side, in the scenario where the price breaks above 109.60, the pair could rise up to 110.00 and 110.45 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.