The U.S dollar continues to retrace lower against the Japanese yen, after the pair moved to overextended levels on Friday, following a stronger than expected Non-farm payrolls jobs report. The USDJPY pair currently trades around the 106.55 level, with key near-term upside technical resistance now found at the 106.72 level. Moving into the U.S trading session, the intraday directional bias of the U.S dollar index and U.S stock markets are likely to guide the USDJPY pair.
The USDJPY pair is likely to see further gains whilst trading above the 106.45 level, key upside resistance is found at the 106.72 and 107.04 level.
Should USDJPY price-action move convincingly below the 106.45 level, intraday sellers are likely to test towards the 106.00 support level.
