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USD/JPY Respected Key Support Despite Pressure on the Greenback

The 8/11 (Friday) session was marked by usd-weakness across the board following softer-than-expected inflation data for the US. It should be noted that the USD was already pressured in recent weeks, so the Friday USD sell-off was in the direction of the prevailing trend. But even though USD/JPY was pressured, it found buyers because it was at a key support area. 

USD/JPY Daily Chart

(click to enlarge)

Support Holds:
- As we can see on the daily chart, the USD/JPY has essentially been trading sideways since April after establishing support at 108.15. 
- Price again held above this pivot in June, actually rebounding at 108.50.
- During the 8/11 session, the market was bearish after the inflation data, but found buyers when price dipped into the support range.
- I think this makes 108.15-108.50 a very critical support area. 
- If it holds, USD/JPY continues to been in a sideways market, with upside to 114.
- If price breaks below 108.15, it would open up another period of bearish outlook, with the 105-106 area in sight.