USDJPY@ 106.50 – Intraday bearish and oversold – Posts new YTD lows
USDJPY reversed sharply lower from the 111.88 area (April 24, 2016) to post series of lower highs and new YTD lows. The pair is testing the 38.2% key retracement area of the 77.13/125.85 upswing (September 2012 monthly higher low/June 2015 monthly high). The oversold condition warns of pullbacks. 107.83/109.26 are resistance levels to cap the bounces.