Failing to challenge the ¥107 figure may trigger a pullback to retest the ¥106.70 support level today as the RSI indicator appears to be turning south on the hourly chart, after Japan’s jobless rate improved to +2.9% in January from +3% in December helping push the Japanese Yen higher. However, the 50-period moving average has so far been acting as strong support and thus a bullish continuation is expected for the USD/JPY currency pair, as US dollar demand overshadows the decline in US Treasury yields.
Support: 106.70 / 106.20
Resistance: 107 / 107.90
