USD/JPY: Contained by a critical resistance at 107.70

The USD/JPY pair is trading below the 38.2% retracement of its latest bullish run at 107.70, the immediate resistance. Valeria Bednarik, a Chief Analyst at FXStreet, examines the currency pair technical outlook.

Key quotes

“In the 4-hour chart, USD/JPY is developing below all of its moving averages, which anyway lack directional strength.” 

“Technical indicators remain within negative levels, although without clear direction. Overall, the risk is skewed to the downside, although there’s no technical confirmation just yet.”

“Support levels: 107.10 106.80 Resistance levels: 107.70 108.00”