Japan released the 10-y Bond Auction and Monetary Base y/y reports and the US will publish Factory Orders m/m, ISM Non-Manufacturing PMI and Trade Balance.
The support rests at 107.880 with resistance at 108.240 which both lines are below the weekly pivot point at 109.510. The EMA of 10 is moving with bearish bias in the descendant channel and it is below the EMA of 200 and the EMA of 100. The RSI is moving in oversold area, the Stochastic is moving in low ranges and the MACD line is below the signal line in the negative territory. The ADX is showing sell signal.
The resistance level breakout will confirm the correction pattern towards 61.8 level of Fibonacci, otherwise, USDJPY may drop to 108.100.
