USD/JPY: more room to the downside yet – Scotiabank

By FXStreet In respect of USD/JPY, analysts at Scotiabank explained that a consideration of recent RSI’s leaves some room for further downside as we look to the January 8 low at 21 and the August 24, 2015 low at 20. Near-term support has been observed around 108.

Key Quotes:

“A break would likely see limited support ahead of 107.20 with risk to 107. A significant breach could provide for a test of the 38.2% 2011-2015 rally Fibo (bottom chart) with risk of a decline to the mid October 2014 low around 105.20.

In terms of resistance we look to 109.80, 111, and 112.50.”
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Source:: FX Street