- USD/JPY struggles to extend pullback from 105.80.
- Break of the one-week-old rising trend line, 50 and 100-bar EMA favor the sellers.
- Bulls stay cautious unless witnessing a fresh monthly high.
- Fed Chair’s Jerome Powell will speak on monetary policy during Jackson Hole’s appearance.
USD/JPY seesaws around 106.00, following a U-turn from 105.80, amid the pre-European session on Thursday. Even so, the yen pair remains below 106.00/10 resistance confluence and stays depressed ahead of the key event.
As a result, the return of the intraday low of 105.80 can’t be ruled out whereas the pair’s further weakness could attack an upward sloping trend line from July 31, at 105.55 now.
In a case where the sellers dominate past-105.55, the monthly low near 105.10 will be in the spotlight.
On the upside, the previous support line from August 19 precedes the key EMA to restrict the pairs’ recovery moves below 106.10, a break of which can attack the weekly high near 106.60.
It should, however, be noted that the quote’s sustained run-up past-106.60 will help its challenge the 107.00/10 important resistance area including the monthly top.
USD/JPY four-hour chart
Trend: Bearish
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