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USD/JPY is trading above the 50% retracement of its latest decline at 106.70, the immediate support. Valeria Bednarik, a Chief Analyst at FXStreet, looks at the technical picture of the USD/JPY pair. 

Key quotes

“The 4-hour chart shows that the pair is holding above its 20 and 100 SMA, with the shortest advancing below the larger ones.”

“Technical indicators, however, show no directional strength, above their midlines, but indicating the absence of buying interest.” 

“The pair would need to advance beyond 108.00, the 61.8% retracement of the same slump, to gain some traction upward, quite unlikely for these days.”

“Support levels: 106.70 106.25 Resistance levels: 107.60 108.00”