USD/JPY continues to decline, as a new low level has been reached on Tuesday. Namely, the rate has fallen below 108.00.
In general, because the rate slowed down the decline during the last two trading sessions, the hourly simple moving averages have caught up. It is a signal that the rate is not oversold, the pressure to retrace back up is not strong enough to push the pair up.
In addition, the pair has no technical support as low as 107.73. Due to the combination of these two factors a decline down to the 107.73 level is expected.
Meanwhile, the rate could continue trading around the 108.00 level until the 55-hour SMA approaches it from above and provides resistance.
