USDJPY LOSSES LIKELY TO EXTEND BELOW 106.00

The U.S dollar has experienced further heavy losses against the Japanese yen on Friday, with price-action extending well below the key 106.00 technical level and making fresh fifteen-month trading lows. The latest drop in the pair was sparked by a fresh round of U.S dollar selling, with the USDJPY now trading around the 105.80 region, after earlier finding support at the 105.55 level. Moving into the U.S session, traders continue to watch the 88.00 level on the U.S dollar index and the release of key January U.S Consumer Confidence data.

• The USDJPY pair remains heavily intraday bearish while trading below the 106.00 level, key intraday support is now found at the 105.55 and 105 levels.

• If the USDJPY pair trades above the 106.00 level for a sustained period, buyers may eventually test towards the 106.60 and 107.30 levels.