Strategist Robert Rennie at Westpac has not ruled out the likeliness of a test of 106.57 in the pair. Key Quotes “Last week we shifted back to a neutral bias on USD/ JPY given woeful price action”. “Clearly, that price action has continued through the last few days, and while USD/JPY holds trend support at 109.34 for now, without aggressive verbal intervention or more, it’s hard to see a compelling argument for a bounce”. “We remain of the view that G7/G20 has come to some sort of ‘tacit agreement’ to “avoid statements that could be perceived as inconsistent with their international commitment to a market-determined exchange rate”. “As such, I think FX markets will continue to push USD/ JPY lower as long as the authorities will allow. The 38.2% retracement of 75.35 in 2011 to 125.86 in 2015 comes in at 106.57”. For more information, read our latest forex news.