USD/JPY has dropped towards the 55-day moving average (DMA) and the current November low at 112.85/73. Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, notes that it is crucial for the pair to hold above this support area to avoid further falls.

USD/JPY falls out of bed back towards the November low at 112.73 

“While the 55-DMA and the current November low at 112.85/73 hold overall upside pressure should remain in play. Further down sits the 111.66 July high.” 

“Above 115.51/60 is the 117.56 level, the 1998-2021 resistance line and 119.41, the downtrend from 1975.”