The US dollar is testing back towards the 106.00 level against the Japanese amidst a weakening market sentiment and failure to overcome the 106.40 level. Sellers are likely to target the 105.50 support level unless sentiment starts to improve during the US session. Overall, the USDJPY pair needs to break above the 106.40 level or sellers may force a test of the August trading low.
The USDJPY pair is only bullish while trading above the 106.40 level, key resistance is found at the 107.00 and 107.30 levels.
The USDJPY pair is only bearish while trading below the 106.40 level, key technical support is found at the 106.00 and 105.50 levels.
