USDJPY 106.00 danger zone

The US dollar has come under pressure against the Japanese yen currency after the pair fell below its 200-day moving average earlier this week. Technical analysis shows that a break below the 106.00 support level would invalidate a large bullish price pattern. The size of the bullish pattern indicates that the USDJPY pair could fall towards the 102.00 level if the 106.00 level is broken. 

• The USDJPY pair is only bearish while trading below the 108.30 level, key support is found at the 106.50 and 106.00 levels. 

• The USDJPY pair is only bullish while trading above the 108.30 level, key resistance is found at the 109.80 and 111.00 levels.