The U.S dollar has moved back towards the pivotal 106.00 level against the Japanese yen, as global stock markets staged a recovery in late Wednesday trading. The USDJPY has so far found intraday resistance from the 106.22 level, with the pair now slipping back under the 106.00 handle before the European session open. The USDJPY pair may continue to consolidate close to the 106.00 handle, as traders position themselves ahead of tomorrow’s market moving Bank of Japan policy meeting.
The USDJPY pair is likely to see further gains once clearly above the 106.00 level, key intraday resistance is now found at the 106.45 and 106.81 level.
If the USDJPY pair fails around the 106.00 level, a technical correction back towards the 105.50 support level seems likely.
