USDJPY still above strong support


Despite the recent sell-off, the USDJPY pair managed to defend the strong support zone of 105.20, and it was trading somewhat higher on Tuesday, last seen at around 105.50.

As long as the greenback trades above 105.00/20, the short-term outlook could be bullish, however, the pair has been moving sideways since the summer, and therefore it lacks a clear trend. 

If the mentioned support is broken down, we could see a quick decline toward August and September lows near 104.00/20. In that case, the short-term outlook would probably change to bearish. 

Alternatively, the intraday resistance could be at 105.60 and afterward at around October' highs near 106.00. 

The greenback needs to rise above 106 to confirm the medium-term bullish outlook.

Recently, it has been difficult to trade this pair as it no longer correlates with stocks, and it tends to move differently than other USD pairs. 
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