The US Dollar started a steady decline from well above the 110.00 level against the Japanese Yen. The USD/JPY pair traded below the 108.50 support area to move into a bearish zone.
Moreover, there was a break below the 107.80 level and the 50 hourly simple moving average. Recently, there was a break below a rising channel with support near 107.98 on the hourly chart. The pair traded as low as 107.25 on FXOpen and it is currently correcting higher.
On the upside, there is a major resistance forming near 108.00, the 50 hourly SMA, and the 50% Fib retracement level of the recent decline from the 108.72 high to 107.25 low.
The USD/JPY pair must climb above 108.00 to start a decent recovery wave. If not, there is a risk of more losses below the 107.50 and 107.25 levels in the near term.
