USD/JPY Hits 18-Month Low of 107.00
The USD/JPY pair extended its slide further during European session and has now dropped to 107.00 level, hitting an 18-month low level.
In the backdrop of Thursday's sharp fall of over 3%, Friday's fall could be pointing to extended period of weakness for the pair. The pair on Thursday took a sharp knock as investors were disappointed by the Bank of Japan's lack of action over announcing fresh stimulus measures. The pair is now headed for its third consecutive months of decline.
Technical levels to watch
On the downside, the pair might be eyeing 107.00 round figure mark to extend some immediate support. However, given the intensity of the fall the pair seems unlikely to hold 107.00 and extend its downfall towards its next major support near 105.50-60 area with some intermediate minor support near 106.00 mark.
On the upside, attempts of recovery might now confront immediate resistance near 107.65-75 area. This is closely followed by a strong resistance near 108.00 mark. Any further recovery beyond 108.00 mark might now be capped near 108.25-30 area and only a decisive strength above this strong resistance might increase prospects of further near-term recovery for the pair.