USD/JPY: Immediately to the downside emerges the 104.40 region

USD/JPY appears to have met decent support in the 104.90 region as is  managing to reclaim the 105.00 level and a tad above on Thursday. Oversold conditions hints a move towards the 106.00 mark but occasional bouts of risk aversion carry the potential to trigger a probable move to August 2019 low at 104.40, FXStreet’s Pablo Piovano briefs.

Key quotes

“The current oversold condition of the USD/JPY pair calls for a potential technical rebound to, initially, the lower bound of the May-July range in the 106.00 neighbourhood.”

“If the selling bias regains momentum, then there should be scope for another visit to the 104.40 zone. If this area of contention is breached, then there are no relevant support levels until the 2020 low at 101.18 (March 9).”