USDJPY has turned more bearish in the short term after breaking below a key level of 108.00 and after retracing more than half of the recent upleg from 105.54 to 111.44.
The pair accelerated its decline after falling below the 50% Fibonacci of 108.49 a week ago. Prices are now pivoting the 78.6% Fibonacci at 106.81. Resistance lies in the area of the 61.8% Fibonacci at 107.80 and at the key 108.00 level. Above this the 50% Fibonacci is an important barrier as well.
The daily RSI is in bearish territory below 50, suggesting there is risk for further downside, with scope to target the key 106 mark and then the low of 105.54. In order to weaken the bearish bias, the market would have to move back above the 50% Fibonacci and clear the 50-day moving average.
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