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Technical Analysis: USDJPY breaks weekly support after BOJ, 106.90 back in focus

Despite the Bank of Japan's (BOJ) easing efforts and watered-down economic forecasts for the first quarter (Q1) of 2020, USDJPY drops below the one-week-old support line. The reason could be traced from the absence of any downbeat comments in the policy statement. The JPY strength could also be traced from the expectations of recovery in 2021. As a result, the sellers are back on the desk and aim to revisit 106.90 level that has restricted the pair's downside since the early-April. Should the USDJPY price slip below 106.90, March 10 top near 105.90 will return to the charts.

Meanwhile, an upside break above the support-turned-resistance, currently near 107.45, can push the pair towards 108.00-108.10 area including 100 and 200-bar SMAs as well as 23.6% Fibonacci retracement of late-March to early-April declines. In a case where the buyers dominate past-108.10, 108.60 can offer an intermediate halt ahead of pushing the quote to the monthly top near 109.40.

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