The US Dollar failed to clear the 109.00 zone and started a fresh decline against the Japanese Yen. The USD/JPY pair broke the 108.60 and 108.50 support levels to move into a bearish zone.
The pair even traded below the 108.20 support level and settled well below the 50 hourly simple moving average. A low is formed near 107.87 and the pair is now consolidating losses.
On the upside, an immediate resistance is near the 108.20 and 108.25 levels. There is also a major bearish trend line forming with resistance near 108.30 on the hourly chart. A clear break above 108.20 and the trend line could stage a strong upward move.
If there is no upside break above the trend line, the pair could continue to move down. An initial support on the downside is near the 107.80 level, below which USD/JPY might dive towards 107.20 on FXOpen.
