Broken Key Support 111.70
Last week the situation on the USDJPY chart changed dramatically. As long as the price was above support 111.70, investors could still expect that the 3-month side movement is only a break in further gains. However, this did not happen, and last Wednesday key support at 111.70 was broken. This resulted that the graph is having bearish sentiment and currently tested weak support of 110.30 should not stop bears.
Possible scenarios for USDJPY
Demand reacted on weak support at 110.30. There may be a return to previously broken level 111.70. If this happens then this level should trigger slides again and at this time it will confirm its strength as a new resistance.
However, if demand is too weak even for a correction move, then two further weak supports should be broken at 110.30, 109.20. After this demand will be able to seek its chance only on stronger support at 106.90.