Bank of America Global Research discusses USD/JPY technical outlook and flags a scope for a move towards 106.70 over the coming weeks.
"The rally in USD/JPY tested resistance from the 200wk SMA and bear channel line from 109-110. TD Setup 9 sell signal occurred," BofA notes.
"As a dip begins, we estimate support for a dip at 106.70 (top of the weekly cloud). Because RSI reached its highest level since January 2017, MACD has crossed trend positive and the weekly cloud lines are getting close to a bullish cross (unconfirmed), we think a dip to support will be bought," BofA adds.