The Japanese yen strengthened after it weakened in the last two days. The USD/JPY pair retreats from 18-month high. Japan Finance Minister, Taro Aso reiterated that intervention is possible, in order to stabilize the forex market. According to Prime Minister Shinzo Abe’s economy advisor, Koichi Hamada, intervention is possible triggered by stronger yen.
USD/JPY retreats from 109.363, which is intraday key resistance, approaching the support area at 108.241. Hourly stochastic has rising but stochastic is still heading south. As today’s trading strategy, you can look for bullish signal confirmation at the support area to go long with 108,670 as target and 109.363 in extension.
A break below 108.241 may be followed by deeper correction to the next support area at 107.548. However, the range 108.241-107.548 is Fibonacci support area bigger view. As alternative strategy watch the Fib’s support area to look for buy signal confirmation with rebound target up to 108.670-109.363.
Key support is at 107.548.The intraday bias will completely turn to bearish if the price managed to break below 107.548. In that case , the price may fall deeper to 107.055-106.426.