Axel Rudolph, analyst at Commerzbank, suggests that the USD/JPY pair is weighing on the 38.2% Fibonacci retracement at 109.23 and failure there concentrates attention back on the recent May low at 109.02.

“Failure at 109.02 would push the late January low at 108.49 and the 50% retracement at 108.25 to the fore. Further down sits the 107.27 61.8% Fibonacci retracement. Minor resistance comes in at the 110.84 April 10 low and the 111.41 200 day moving average. These guard the 112.33 downtrend. Above the 112.33 downtrend lies the 114.55 October 2018 high.”