USD/JPY: With the pair dropping further on Wednesday, further weakness is likely. On the downside, support comes in at the 104.50 level where a break if seen will aim at the 104.00 level. A cut through here will turn focus to the 103.50 level and possibly lower towards the 103.00 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, resistance resides at the 105.00 level. Further out, we envisage a possible move towards the 105.50 level. Further out, resistance resides at the 106.00 level with a turn above here aiming at the 106.50 level. On the whole, USD/JPY looks to move further lower on corrective pullback.
USD/JPY Daily Chart