USDJPY remains below strong resistance

The greenback dipped against the yen but managed to strengthen against the Euro over the previous days. On Tuesday, the USDJPY pair was trading somewhat lower on the day, hovering at around 106.70.

As long as the pair remains below previous lows of 107.00, the short-term outlook seems bearish, and rallies to this level could be sold. There is another resistance near 107.15, where the short-term downtrend line is located. 

Another support for the pair could be at 106.30, where last week's lows are seen, and if the price drops below this zone, a more extensive correction toward 105.00 could occur.

On the other hand, if the greenback starts rallying, which is possible, the mentioned resistances should stand in its way. However, if the pair clears the 107.15 level, a more substantial rally toward 108.00 might happen.

A more significant rally here is hard to imagine, considering how much money is the Fed throwing at the financial markets. Still, the greenback refuses to decline so that we might see some sideways trading over the next weeks. 
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