USDJPY 108.65 still key
The US dollar is starting to test towards the 108.65 resistance level against the Japanese yen as risk-on trading sentiment improves. If bulls can break above this area a further upside break towards the 109.00 resistance level remains possible. The four-hour time frame is also showing that a small head and shoulders pattern could form if bulls fail to rally the USDJPY pair from this area.
The USDJPY pair is only bearish while trading below the 108.44 level, key support is found at the 108.00 and 107.70 levels.
If the USDJPY pair trades above the 108.44 level, key technical resistance is found at the 108.65 and 109.00 levels.