USD/JPY Loses Grip of 109.00 Handle

Currency exchange rate board of multiple currencies
The Japanese yen has strengthened up against the U.S. dollar after marking an intraday low of 109.85 to the greenback last Friday.

Yesterday (June 8) USD/JPY halted a four-day rally as it dropped 1.1% to 108.47, the biggest decline since March 27.

Traders attributed the currency pair's swift decline to profit-taking of USD/JPY long positions ahead of the U.S. Federal Reserve's two-day (Tuesday, Wednesday) monetary policy meeting. 

As shown on an Intraday 30-minute Chart, USD/JPY has failed to post a sustainable rebound after yesterday's 1.1% slide.



Source: GAIN Capital, TradingView

Currently the descending 20-period moving average is capping any upside potential of the pair.

A Key Resistance is located at 108.55, which is a reaction high and is around the upper Bollinger band.

Unless this level is surpassed, USD/JPY should only seek Downside Support at 107.80 (61.8% Fibonacci extrapolation from a price floor at 109.35).

Below 107.80, the next Downside Support would appear at 107.40 (100% Fibonacci extrapolation).
Related tags: Forex

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