Technical Analysis: USDJPY bulls attack 105.80 key resistance

Technical Analysis: USDJPY bulls attack 105.80 key resistance

Following its bounce off 38.2% Fibonacci retracement of July-September downside, USDJPY again confronts the joint of 50-day SMA and a falling trend line from July 01, around 105.80. Although strong RSI conditions favor bulls, a daily closing beyond 105.80 becomes necessary for the pair to probe 50% and 61.8% Fibonacci retracement levels, respectively near 106.05 and 106.60.

In the absence of the buyers' ability to conquer 105.80, the 105.20 and the monthly bottom close to 104.90 will gain market attention. If at all the uncertainty surrounding the US Presidential Election and stimulus weigh on the pair below 104.90, the sellers may catch a breather close to 104.30 before challenging the previous month's low near 104.00.

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