There is room for the pair to surpass the key 107.90 region, suggested Axel Rudolph, Senior Technical Analyst at Commerzbank.
“USD/JPY has gotten close to the late February high at 107.91. A break above here is still likely over the next few days and will trigger gains to the 50% retracement at 108.98 and the top of the cloud at 109.32. Dips lower will find initial support at the 106.98 55 day ma and the 105.66 current April low”.
“Below the March low at 104.56 would introduce scope to 103.22, then 100.69 (Fibonacci retracements). This is not favoured”.
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