The yen weakened against its major counterparts, especially the greenback as Wall Street focused on the satisfying earning reports and ignored mixed European stock market and bearish Asian market.
Yen also weakened against the USD after one the Fed official. New York Fed President William Dudley, noted that the monetary policy adjustment will be done gradually and carefully as US economy is still facing uncertainty. Dudley is also known as a close friend of Janet Yellen, the chairwoman of the Federal Reserve.
Until 15:00 GMT, USD/JPY is still hovering around 108.82, rose as much as 0.08%.
However, based on technical analysis method we can see that USD/JPY remains in bearish bias for intraday outlook. The price has pulled back into the Fibonacci area at 108.549-108.995. The price is testing 50 MA on hourly chart as well. Hourly stochastic and CCI are overbought and all you have to do is to wait for bearish signal within the Fibonacci area as signal to go short with target at 108.273-107.826.
Be very careful if the price managed to break above the resistance at 108.995 because it will turn the intraday bias to bullish and possibly will be followed by a bullish move up to 109.313-109.718. In that case, the bearish scenario likely will fail.