The US dollar is trading to the upside against the Japanese yen currency on Tuesday after the PBOC announced a Reserve Ratio Requirement cut during the Asian session. Bulls now need to build on earlier gains above the pivotal 108.40 level and eventually surpass the former weekly trading high, at 109.08. A loss of the 108.40 loss will likely encourage technical selling back towards 108.10 support level.
The USDJPY pair is only bullish while trading above the 108.40 level, key technical resistance is found at the 108.75 and 109.08 levels.
If the USDJPY pair falls below the 108.40 sellers, key technical support is found at the 108.10 and 107.75 levels.
