USD/JPY: correcting oversold conditions, still at risk of falling.
From a technical point of view, the USD/JPY pair is currently struggling with the 23.6% retracement of its latest slump, with the current recovery looking corrective, given that, in the 4 hours chart, technical indicators are barely recovering from oversold readings, lacking sufficient strength to confirm further gains ahead. In the same chart, moving averages continue heading lower above the current level, with the 20 SMA retaining a strongly bearish slope, now providing a dynamic resistance at around 107.95. Overall, the risk is skewed to the downside, although a break below 107.00 is needed to confirm a new leg lower.
Support levels: 107.00 106.65 106.30
Resistance levels: 107.70 107.95 108.20