According to Axel Rudolph, Senior Technical Analyst at Commerzbank, the pair’s perspective remains bearish while below 109.74. Key Quotes “USD/JPY nearly retested its April low at 107.63 before bouncing back”. “We will nonetheless stick to our immediate bearish forecast while it remains below last week’s high at 109.74”. “Below 107.63 lies major support – namely the 106.63 38.2% Fibonacci retracement of the move up from 2012. In this vicinity we also find the 200 month moving average at 105.86 and we suspect that the currency pair will attempt to stabilise here”. “Nearby resistance comes in between the February and March lows at 110.67/111.04. We will need a close above the latter level to alleviate downside pressure and allow for a recovery towards the resistance line at 111.17”. For more information, read our latest forex news.