USDJPY continues to face downside pressure as it extended it medium-term downtrend on Tuesday. On the downside, support comes in at 104.50 level. Below this level will turn attention to the 104.00 level. Further down, we expect a possible move towards the 103.50 level. A cut through here will open the door for more gain towards the 103.00.

On the upside, resistance comes in at the 105.50 level where a break will target the 106.60 level. Below that level will turn focus to the 107.00 level and then lower towards the 107.50 level. On the whole, USDJPY faces further downside threats medium term.

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