- Seven-week-old support line gains market attention as MACD turns red for the first time since early January.
- Fresh buying awaits daily closing beyond 105.80, monthly support adds to the downside filters.
Following its drop to the one-week low, USD/JPY wavers in a choppy range around 105.00 as Tokyo off disappoints momentum traders during early Tuesday.
Not only the psychological level of 105.00 but an ascending support line from January 06, near 104.80, also challenges the USD/JPY bears. Notably, the MACD has turned red for the first time in nearly two months, which may encourage the sellers to break the 104.80 support.
Also acting as the key support could be an area including January 11 top and the monthly low near 104.40 this guards the 103.33, the 21st January low. Meanwhile, the corrective pullback may aim for the early-month top surrounding 105.80 before trying to reach the monthly high above the 106.00 threshold.