USDJPY Feels the Dollar March

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The yen returned to its safe-haven status when the stocks around the world dropped substantially.

As seen on the daily chart above, prices have tested two trendline lows and currently, we are on a bounce. The recovery was initiated on the back of the CB’s coordinated responses to COVID19.

The current target is a retest of the bear flag base, which the price broke on its way to posting the 101.18 lows. The retest of the base comes right under the 109 handle.

A daily close above the bear flag will most likely lead to a higher level.  However, the support at the 104.30 region will act firmly if we get a confirmed retest of the flag base. This a level to look closely at when and if things turn ugly.

The pair has put up a base at the 105.20 support region in the short-term.

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We are likely in an ascending wedge pattern with 106.70 marking an intraday support.

A break and a close above 107.80 would suggest a move towards 109.80.

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