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.
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.