The pair USD/JPY has fallen to one-month lows, around the region of 104.20. Karen Jones, head of the technical analysis research team at the FICCI in the Commerzbank, is closely watching a break from the 104.00 level that would open the way for further losses.
“The USD/JPY, that was under pressure again, it remains limited by the downtrend of the last three months to 105.70 and the focus is on the September low of 104.00. This, along with the 200-month moving average at 103.93, protects the 103.43 / 78.6% Fibonacci retracement, which is the last defense for the March low of 101.18 “.
“The recoveries will find initial resistance lines at 105.70 ahead of the seven-month resistance line at 106.23. Only above that will trigger a move in the 200-day moving average at 107.17 “.
Credits: Forex Street