USD/JPY - Volatility Lowers
USD/JPY is still trading around 110. The pair is trading sideways between hourly support at 110.59 (20/05/2016 high) and hourly support at 108.72 (18/05/2016 low). Expected to show further weakening towards 108.72 as the medium term momentum is oriented downwards and the technical structure suggests a further strong bearish move as the medium-term momentum should prevail.
We favour a long-term bearish bias. Support at 105.23 (15/10/2014 low) is on target. A gradual rise towards the major resistance at 135.15 (01/02/2002 high) seems now less likely. Another key support can be found at 105.23 (15/10/2014 low).