The US dollar remains vulnerable to further losses against the Japanese yen currency as market sentiment towards Sino-US trade talks is fragile. The USDJPY pair is likely to suffer a strong decline once a confirmed breakout below the 107.90 level occurs. Going forward, selling any rallies towards the 109.00 resistance level appears to be the best short-term trading strategy.
The USDJPY pair is only bullish while trading above the 109.00 level, key resistance is found at the 109.30 and 109.60 levels.
The USDJPY pair is only bearish while trading below the 109.00 level, key technical support is found at the 107.90 and 107.50 levels.
