USD/JPY technical analysis: Down 20 pips after Doji candle

• USD/JPY's corrective bounce from recent lows seems to have ended.
• The pair is on the defensive, having charted a Doji candle on Thursday.

USD/JPY is losing altitude in Asia, having charted a Doji candle at the former support-turned-resistance of 107.85.

The currency pair rose to a high of 108.16 only to close largely unchanged on the day at 107.78 on Thursday. Essentially, the pair created a doji candle with a long upper shadow – a sign of bull failure to hold above the key resistance at 107.85.

The follow-through to the rejection at the price hurdle has been bearish so far. As of writing, the pair is trading at 107.58, down 25 pips from the high of 107.83 hit earlier today.

The action seen in the last 24 hours indicates the corrective bounce from the recent low of 106.78 has likely ended at 108.16 and the pair risks falling back to new multi-month lows below 106.78. After all, the bearish lower highs and lower lows structure on the dialy chart is still intact.

Daily chart

Trend: Bearish

Pivot levels