Technical Analysis: USDJPY breaks three-week-old falling trend line to pierce 106.00
Having successfully crossed a downward sloping trend line from July 17, USDJPY is all set to challenge 106.60/65 resistance zone comprising 200-bar SMA and multiple lows marked in the previous month. However, August 03 top surrounding 106.30 may offer an intermediate halt during the rise. If at all the bulls remain dominant past-106.65, 107.00 and 107.80 may challenge the bulls before diverting them to the July month's high close to 108.20.
On the contrary, 105.30 could return to the charts if the pair drops below the resistance-turned-support, at 105.85 now. Although RSI conditions are most likely to stop bears around 105.00, the pair further downside will challenge the previous month's bottom around 104.20. Other than the technical details, recovery in risk sentiment also favors the pair's upside than the otherwise case.