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USD/JPY Sideways Trading

USD/JPY strong bounce from 108.39(31/05/2018 low) pauses, trading along 109.60.Strong support and resistance are located at108.05 (09/02/2018 low) and 111.48 (18/01/2018high). The technical structure suggests furthershort-term sideways trading moves.

We favor a long-term bearish bias. A gradualrise towards major resistance at 125.86(05/06/2015 high) seems unlikely. The pair isexpected to decline further along long-termsupport at 101.20 (09/11/2016 low). The pairtrades slightly below its 200 DMA.

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