- USD/JPY below 106.00/10 critical resistance.
- The pair struggles to hold-on after pulling back from 105.80.
- Price below a one-week-old rising trendline, and key EMAs
- A move to fresh monthly highs can attract bulls.
- Federal Reserve Chairman Jerome Powell to address Jackson Hole summit, market awaits the speech.
USD/JPY is trading around 106.00 in the pre-European session on Thursday after bouncing back from the 105.80 posted earlier. The pair is still staying depressed ahead of the Fed speech at the Jackson Hole summit and is below the 106.00/10 resistance confluence.
The weakness means a return to the intraday low of 105.80 is possible, and a further downtick would put the upward sloping trend line from July 31, at 105.55 now, under threat.
If the bears successfully push past 105.55 levels, then the monthly low near 105.10 will be in play.
The support line from August 19 and the key EMA would restrict the attempts to break 106.10 on the upside. A successful move above this level will bring the weekly high near 106.60 in the target.
A run-up past 106.60 area will challenge the critical resistance area around 107.00/10 – consisting of the monthly tops.