Week of 05/03-09/03 USDJPY Possible Retest of 106.50

USDJPY broke an important level of support near 106.50 last week with a strong downwards move. Now we think that this week may start with an initial impulse move on the upside and a test of 106.50 area may be in sight, which now should serve as support turned to resistance. As we see from the chart, a move up to these levels may validate also the trend line, which also signals for a bearish action at this area. For this week we anticipate an initial move of higher probability on the upside up to 106.50, then we expect price to react at this important structure and bears to kick in and drag the price lower to the levels of 105.00.