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USD/JPY Pair Is Now Testing A Major Bearish Trend Line With Resistance Near 108.88

The US Dollar formed a strong support base near the 108.35 and 108.45 levels against the Japanese Yen. As a result, the USD/JPY pair started a fresh increase above the 108.65 level.

The pair even climbed above the 108.75 level and settled well above the 50 hourly simple moving average. It is now testing a major bearish trend line with resistance near 108.88 on the hourly chart.

If there is an upside break above the trend line, the pair could rise towards the 109.20 resistance. The next major resistance above 109.20 is near the 109.50 level on FXOpen.

If there is no upside break above the trend line, the pair could start a fresh decline. An initial support on the downside is near the 108.75 level and the 50 hourly SMA, below which USD/JPY might dive towards the 108.45 support.

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