Bank of America Global Research discusses USD/JPY technical outlook and flags a scope for a material move lower on a weekly close below 105.39/104.47.
"On a daily candle chart, yes the break of 106 mattered. However the two weekly closing lows of 105.39 are what matter more for the bigger picture. This was the same weekly closing value in March 2020 and in August 2019. In March 2018 it closed at 104.74. So there is still some support nearby and is probably why $/JPY hasn't sold off more from a technical view on the break of 106," BofA notes.
"A descending triangle pattern (unconfirmed until a break happens) implies a break lower could follow with 100.72 and 94.85 possible," BofA adds.