The fall of a sudden drop to sub-105.50 level, the pair USD / JPY has recovered some lost ground and is currently trading back above 106.00 level.
The couple witnessed intense selling pressure after comments from BOJ Governor Kuroda denied the possibility of further monetary easing by the central bank later this month. Kuroda, however, showed readiness to add stimulus, if necessary, to eliminate deflationary pressure and support the fragile economy.
Then the focus would be monetary policy decision of the ECB which would add volatility in the forex market and eventually drive the main USD / JPY.
On the economic front, traders will be looking to press the United States, including – Philly Fed Manufacturing Index, the weekly jobless claims data and existing home sales later during the NA session.
Technical levels to see
If the pair resume its weakening trend and fall back below 106.00 mango, it seems to break through support near 105.50-40 and head region following the lower drift towards its next important support near the region 104.70-65.
On the other hand, the momentum above 106.90 to 107.00 immediate resistance could continue to face strong resistance at 4-week high near 107.50 region. A decisive strength above 107.50 now seems to help the pair to its next major resistance at the 100-day SMA region near 108.35 to 40.