Axel Rudolph, analyst at Commerzbank, points out that USD/JPY continues to hover above the 55 day moving average at 108.52 which remains exposed and failure there would re-engage the November low at 107.89.

“Given the very dense overhead resistance, namely the 200 week moving average at 109.81 and the 2015-2019 downtrend line at 110.46, we will assume that the cross has topped for now. Failure at 107.89 would probably trigger losses to the 106.48 October low. Failure at 106.48 would target the 106.00 mark. On a weekly chart close above the 2015-2019 downtrend line.”