USDJPY now looks to a test of 108.50 and now could attempt an assault to key resistance area.
We held the view that USD could test 108.20 first before a deeper pull-back can be expected. USD subsequently rose to 108.17 before ending the day at 108.07. The underlying tone has improved and this could lead to USD testing the next resistance at 108.30. For today, a break of last month’s 108.47 peak appears unlikely. On the downside, a break of 107.90 would indicate that the current mild upward pressure has eased.