The US Dollar remained in a positive zone and climbed higher nicely after it broke the 105.80 resistance against the Japanese Yen. The USD/JPY pair broke the 106.20 resistance zone to move into a positive zone.
The pair traded as high as 106.57 on FXOpen and it settled well above the 50 hourly simple moving average. The pair is currently correcting lower and trading below the 106.45 level.
On the downside, there is a strong support forming near the 106.20 level, and a crucial bullish trend line on the hourly chart. If there is a downside break below 106.20, there are chances of a move towards the 105.80 support level.
As long as the pair is above the 106.20 support, it is likely to continue higher. An initial resistance is near the 106.50 level, above which the pair could surpass the 106.57 high in the near term.
