USDJPY's decline halted at key support

Yesterday's huge decline in the equity markets failed to spark any strong selling in the USDJPY pair and it declined only mildly. On Friday, it was up 0.3%, trading at around 107.20 during the EU session.

More importantly, it looks like the greenback has defended the key support near 107.00 yet again. As long as the USDJPY pair remains above this level, dips could be bought and the medium-term trend seems positive. 

The intraday resistance seems to be at around 107.40 and if the pair jumps above this level, we could see a rally toward 108.00, or possibly to 108.40, where the 200-day exponential moving average is located.

Alternatively, if sentiment worsens again and the greenback drops below the 107 mark, a steeper decline toward 106.00 might happen quickly. 

Volatility in the FX markets remains subdued, despite massive movements elsewhere, which is once again a bad sign for short-term FX traders. 
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