USD/JPY: The risk is skewed to the downside

USD/JPY is trading below the 38.2% retracement of its latest daily advance. Valeria Bednarik, a Chief Analyst at FXStreet, examines the pair from a technical perspective.

Key quotes

“The USD/JPY pair is trading just below the 38.2% retracement of its latest daily advance, also below all of its moving averages in the 4-hour chart.” 

“Despite the lack of follow-through, the risk is skewed to the downside, as the 20 SMA is crossing below the larger ones, while technical indicators lack directional strength.”

“Support levels: 107.10 106.80 Resistance levels: 108.00 108.35”