USDJPY – bears extend below strong supports at 109.10/06 but corrective action may precede fresh weakness
The pair remains firmly in red on Thursday, extending steep fall into third straight day and probing below strong supports at 109.10/06 (weekly cloud base /Fibo 76.4% of 107.31/114.73).
Fresh weakness extended to 108.73 so far (the lowest since 11 Sep) with close below 109.06 to generate strong bearish signal for further easing and expose next targets at 108.26 (29 Aug spike low) and 108.12 (11 Sep low).
Meanwhile, bears may take a breather on oversold daily studies (no firmer bullish signals so far), with corrective upticks seen as selling opportunities and ideally capped by former key supports now reverted to resistances at 110.00/15 (psychological barrier / broken Fibo 61.8% of 107.31/114.73, reinforced by falling daily Tenkan-sen).
Res: 109.47; 110.00; 110.15; 110.46
Sup: 108.73; 108.26; 108.12; 107.50