The major support at around 108.30 was broken to the downside, and stop-losses were hit, sending the greenback further lower. If the pair closes below 108.30 on a daily basis, it could be a strong bearish signal, implying the medium-term uptrend has ended.
In such case, bears will most likely target 106.90, 106.20, and the next strong support near 105.
However, markets are known for stop-loss hunting. Thus, the USDJPY pair could start rallying now cause most short-term traders should be stopped out.
The first intraday resistance is now at 108.35, and if not held, further rally toward 108.60 could occur. Long positions should be attractive if the USDJPY pair closes above 108.35 on the daily chart.
US yields moved sharply higher today, which could support the USDJPY pair for a daily reversal.