Technical Analysis: USDJPY remains below two-week-old resistance line despite BOJ's dovish halt

USDJPY remains lackluster above 107.00 as US dollar weakness dims the risk-on mood. Further, the BOJ's inaction and warnings over additional economic hardships, due to the coronavirus (COVID-19), adds to the pair's lack of reaction. Even so, the quote's sustained trading below a downward sloping trend line from July 01, currently around 107.35, becomes an early signal that the sellers are waiting for a fresh downtick to target 107.00. It should, however, be noted that a horizontal area comprising multiple lows marked since early-June, close to 106.55/65, becomes the strong downside support to watch during the pair's extra weakness.

On the contrary, the pair's ability to cross 107.35 resistance will challenge the 200-bar MA level of 107.50 to target 107.80 and 108.00 round-figures. Though, a monthly top near 108.15 and 61.8% Fibonacci retracement near 108.40 can probe the bulls afterward. Traders should also know that the quote's refrain from declining below 106.00 keep the buyers hopeful.

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