The US dollar has staged a major reversal against the Japanese yen as traders started to move into riskier assets after the bullish coronavirus vaccine news.

USD/JPY is back under 105.00 This drop is a substantial one for a usual Asai range, although its small compared to the rocket that was under USD/JPY overnight. The price respected a 4-moth old descending trend line since July 1.

The USD/JPY pair could surge towards the 108.00 resistance level if the 106.00 psychological resistance level and the trend line is overcome. Any pullbacks towards the 105.00 level are likely to be seen as a major buying opportunity for USD/JPY bulls.

The USD/JPY pair is only bearish when trading below the 105.00 level, with key support found at the 104.50 and 104.00 levels.

The USD/JPY pair is only bullish when trading above the 105.00 level, with key resistance found at the 106.20 and 107.40 levels.