The US dollar is testing the pivotal 109.60 level against the Japanese yen currency after buyers failed to rally the pair above the 110.00 level on Tuesday. A sustained break below the 109.60 level may provoke further technical selling towards the 109.14 support level. The MACD indicator on the four-hour time frame is also correcting lower, signalling that further downside in the USDJPY pair seems likely.
The USDJPY pair is only bullish while trading above the 109.60 level, key technical resistance is found at the 110.00 and 110.40 levels.
If the USDJPY pair moves below the 109.60 level, sellers may test towards the 109.30 and 109.14 support levels.
