USDJPY Watching 106.40
The US dollar is holding above the 106.00 level against the Japanese yen currency as global equity markets stabilize after the early week sell-off. The 106.40 level is technically important to the upside and is the key resistance level preventing a rally to 106.80. To the downside, weakness below the 105.80 level could start a major technical sell-off towards the 104.70 area, and possibly lower.
The USDJPY pair is only bullish while trading above the 106.40 level, key resistance is found at the 106.80 and 107.00 levels.
The USDJPY pair is only bearish while trading below the 106.40 level, key support is found at the 105.80 and 104.70 levels.