USD/JPY technical analysis: Remains vulnerable, bears likely to target levels below 107.00 handle

The USD/JPY pair finally broke down of its recent consolidative trading range, held over the past one week or so and tumbled to its lowest level since the early-Jan. flash crash.
Bulls, however, showed some resilience near 61.8% Fibonacci retracement level of the 104.69-112.40 up-move, which should now act as a key trigger point for bearish traders.

Haresh Menghani FXStreet

Looking at a slightly bigger picture, the pair has been trending lower along a short-term descending trend-channel from yearly tops - set on April 24, clearly indicating a well-established near-term bearish trend and supporting prospects for further declines.

However, oversold conditions seemed to be the only factor holding investors from placing any fresh bearish bets and might now lead to near-term consolidation or a modest rebound though might still be seen as a selling opportunity near the 108.00 handle.

A convincing break through the mentioned support will reinforce the bearish bias and turn the pair vulnerable to weaken farther below the 107.00 handle and aim towards challenging the trend-channel support, currently near the 106.70 region.

Having said that, a sustained recovery beyond the 108.50-70 supply zone - marking 50% Fibo. level and also nearing the descending trend-channel hurdle, might negate the bearish outlook and prompt some aggressive short-covering move in the near-term.

USD/JPY daily chart

USD/JPY

Overview
Today last price	107.67
Today Daily Change	-0.43
Today Daily Change %	-0.40
Today daily open	108.1

Trends
Daily SMA20	108.7
Daily SMA50	110.08
Daily SMA100	110.47
Daily SMA200	111.19

Levels
Previous Daily High	108.62
Previous Daily Low	107.9
Previous Weekly High	108.8
Previous Weekly Low	108.16
Previous Monthly High	111.71
Previous Monthly Low	108.23
Daily Fibonacci 38.2%	108.17
Daily Fibonacci 61.8%	108.34
Daily Pivot Point S1	107.79
Daily Pivot Point S2	107.49
Daily Pivot Point S3	107.07
Daily Pivot Point R1	108.51
Daily Pivot Point R2	108.93
Daily Pivot Point R3	109.23

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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