The US dollar is starting to fade against the Japanese yen currency after the pair launched a counter-rally towards the 107.45 resistance level. Traders may use the latest short-term rally to sell the USDJPY pair, with the 105.50 level the potential bearish target. Overall, unless a Sino-US trade deal is reached this week the USDJPY pair remains vulnerable to heavy technical selling.
The USDJPY pair is only bearish while trading below the 106.90 level, key technical support remains at the 106.40 and 105.50 levels.
The USDJPY pair is only bullish while trading above the 106.90 level, key resistance is found at the 107.45 and 107.70 levels
