The US Dollar failed to continue above the 108.00 resistance and recently tested the 107.25 support area against the Japanese Yen. The USD/JPY pair seems to be forming a decent support base above the 107.20 level.
Recently, it traded as high as 107.89 on FXOpen and it is currently declining. There was a break below the 107.70 level and the 50 hourly simple moving average. Moreover, the pair seems to be following a bearish trend line with resistance near 107.85 on the hourly chart.
An immediate support is near the 107.55 level or the 50% Fib retracement level of the recent rise from the 107.28 low to 107.89 high.
If the USD/JPY pair fails to stay above the 107.50 region, it could continue to move down and revisit 107.20. Conversely, a clear break above the trend line and 108.00 is needed for a steady increase.
