Technical Analysis: USDJPY sellers eye further declines towards 105.20
In addition to the pair's pullback from 200-bar SMA, bearish MACD also suggests the USDJPY's further weakness. In doing so, the sellers may target the 61.8% Fibonacci retracement level of 105.30 as an immediate target. However, an ascending trend line from August 19, at 105.20 now, may challenge the quote's further weakness, if not then 104.75 and July 31 bottom close to 104.20 will return to the charts.
On the upside, a clear break above the 200-bar SMA level of 106.10 becomes necessary for the bulls to retake controls. While the August month's peak close to 107.05 can offer strong resistance to pair past-106.10, any further upside will enable the USDJPY prices to July's high around 108.15. it's worth mentioning that the uncertainty surrounding Japan's leadership can recall the bulls should the US dollar bounces off the 28-month low.