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​Technical Analysis: USDJPY bears look to yearly low on defying falling wedge

With the US dollar's stellar weakness dragging USDJPY below the three-month bottom the previous day, bears are determined to ignore oversold RSI conditions. Also favoring the pair sellers are increasing hopes of the Democratic Party's victory in the US elections and further fiscal stimulus. As a result, the March 12 low of 103.08 and the 103.00 round-figure may provide immediate support during the quote's fresh fall before directing it to the 102.00 level comprising March 10 bottom. In a case where the prices stay weak past-102.00, the yearly trough close to 101.15 should be watched carefully.

Meanwhile, an upside break of the previous support, at 103.80 can extend corrective recovery towards the monthly peak surrounding 105.35. However, the resistance line of the falling wedge and a descending trend line from March 25, respectively around 105.45 and 106.00, offers strong upside barriers to the USDJPY bulls past-105.35.

Other than the technical details, the pre-NFP cautious mood can also probe the USDJPY recovery as the yen is mostly considered a safe-haven and gains in times of uncertainty.

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