The US dollar remains vulnerable to further losses against the Japanese yen currency as market sentiment towards Sino-US trade talks is fragile. The USDJPY pair is likely to suffer a strong decline once a confirmed breakout below the 107.90 level occurs. Going forward, selling any rallies towards the 109.00 resistance level appears to be the best short-term trading strategy.
• The USDJPY pair is only bullish while trading above the 109.00 level, key resistance is found at the 109.30 and 109.60 levels. • The USDJPY pair is only bearish while trading below the 109.00 level, key technical support is found at the 107.90 and 107.50 levels.