The US dollar is testing major resistance against the Japanese yen currency as the recovery from the 106.20 area continues to gather pace. The USDJPY pair is trading around the neckline of a bullish reversal pattern, which is projecting a rally towards the 109.00 area. If bears move price under the 106.80 level, then a deep technical pullback towards the 106.20 support region could take place.
The USDJPY pair is only bearish while trading below the 106.80 level, key support is found at the 106.50 and 106.20 levels.
The USDJPY pair is only bullish while trading above the 106.80 level, key resistance is found at the 107.80 and 108.40 levels.