USDJPY approaching sell zone

The US dollar has recovered above the 106.00 level against the Japanese yen currency, following a recent strengthening in the US dollar index. Traders that are bearish towards the pair in the short-term may sell the recent recovery back towards the 106.30 resistance area. Technical analysis highlights that the USDJPY pair could decline towards the 10.300 area if a breakout under the 104.80 area takes place.

• The USDJPY pair is only bullish while trading above the 106.30 level, key resistance is found at the 106.60 and 107.00 levels.

• The USDJPY pair is only bearish while trading below the 106.30 level, key support is found at the 105.40 and 104.80 levels.