USDJPY is heading towards the 9 months low at 107.319. For the past 9 months, whenever the USDJPY head to that area, we saw prices rejecting the lows.
I am looking at 108.712 as my first support and if this support level does not hold. The next support to check out is 107.911. The target cannot be high as the short-term momentum is still a sell. On Wednesday at the World Economic Forum in Davos, Treasury Secretary Steven Mnuchin said the U.S. is open for business and welcomed a weaker dollar, saying that it would benefit the country.
The comments made USD weaker and need to see when would this momentum drop to.
If we see prices move below 107.50, all short term buy bets are off.