USDJPY risk builds up on 106.97 resistance area as it looks to strengthen further in the days ahead. On the upside, resistance comes in at 106.50 level. Above this level will turn attention to the 107.00 level. Further out, we expect a possible move towards the 107.50 level. A cut through here will open the door for more gain towards the 108.00. On the downside, support comes in at the 105.50 level where a break will target the 105.00 level. Below that level will turn focus to the 104.50 level and then lower towards the 104.00 level. On the whole, USDJPY faces further upside pressure.
